ACCOUNTANT EXPLAINS: Should You Buy, Lease or Finance New Car?

Поделиться
HTML-код
  • Опубликовано: 30 июл 2024
  • Should you buy or lease a car as a business vehicle? I've asked myself this question sometimes because if you are self-employed or have a small business then you can take advantage of what is known as the vehicle tax deduction.
    Book a Discovery Call: schedule.lyfetaxes.com/discov...
    Subscribe: bit.ly/2HJlq46
    The vehicle tax deduction allows you to write off your car, your SUV, your truck, and whatever you may drive for business purposes whether you decide to lease vs buy your car.
    Timestamps:
    Intro (0:00)
    Buying vs Leasing a Car (1:40)
    Vehicle Tax Deduction (5:00)
    Two Methods to Write off a Business Vehicle (6:46)
    Factor #1 (9:02)
    Factor #2 (10:36)
    Factor #3 (14:12)
    My Personal Decision (15:04)
    Bonus Tip (16:01)
    In this video, what I do is give you a solid guide, so that you run the numbers and compare for yourself if you should buy vs lease a car. I'll go over:
    - How to Qualify for Vehicle Tax Deduction
    - The Two Methods Deduct a Vehicle
    - Most Important Factors to Consider when lease vs buy a car
    Along with some math and calculations along the way.
    More Popular Uploads:
    How to Become a Millionaire, Step by Step: • How to Become a Millio...
    How to Write Off Your Dream Car: • How to Write Off Your ...
    Vehicle Tax Deduction: • Vehicle Tax Deduction:...
    7 Popular Tax Write-Offs That Could Trigger an IRS Audit: • 7 Popular Tax Write Of...
    How to File Your Taxes as an LLC: • How to File Your Taxes...
    Single Member LLC, What You Must Know: • Single Member LLC: Wha...
    How to Start a Business: • How to Start a Busines...
    Please be sure to give this video a like and subscribe to our channel so you don't miss out on future videos!
    ///
    Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

Комментарии • 87

  • @vikram.SumerSingh
    @vikram.SumerSingh Год назад +4

    Finally a video that makes sense and goes through actual facts and rules. Loved it & Subbed.

  • @rpimentel143
    @rpimentel143 Год назад +1

    Very clear and informative! Thank you

  • @singwritedance1
    @singwritedance1 5 месяцев назад

    This was very informative and well done. Thank you!

  • @antoinestephensonphotograp6191
    @antoinestephensonphotograp6191 Год назад +3

    Great content. I would love to give a tip. If you loosen your tie you can push the lapel mic down into the knot and hide it from hanging over the top. Look at the sports talk shows. They typically hide it In the tie.

  • @FinancialFreedomMadeSimple
    @FinancialFreedomMadeSimple 2 года назад

    Great topic! very informative.

  • @SergioB-MakingMillionaires
    @SergioB-MakingMillionaires 2 месяца назад

    This is very helpful. Thank you

  • @GeekyGizmo007
    @GeekyGizmo007 2 года назад

    Solid. Thank you.

  • @UrbanBDKNY
    @UrbanBDKNY 11 месяцев назад +1

    Amazing video. Me and my wife have been leasing for 9 years but cars have gotten so expensive and interest rates that it doesn’t make sense to lease again. The same car we have now would be 18,000 more in just 3 years
    We have an option to buy so we may buy the car and deduct the interests and gas etc on that vehicle until these companies get back down to earth with prices and leasing options

  • @andrewharding4763
    @andrewharding4763 Год назад

    Excellent video. Thank you.

  • @bebin73
    @bebin73 2 года назад +4

    It depends on what you're wanting to do with the vehicle - are you buying in your own name then "renting" or leasing it to your biz? Is it purchased in the biz name? If you lease you can't use section 179 with accelerated depreciation as you don't own it (from my understanding). You have to buy it outright (cash or financing) to take advantage of that. People like to lease because they can afford a lot more car than they could if they financed it. You also know exactly how much it's going to cost you to own the vehicle. You can still pay off the lease at any time and sell it if you can benefit from a high value market (like we are experiencing now). You can also buy it at the end of the lease and keep it if you like it that much. So leasing is no different than a loan - you don't own a vehicle you have a loan on with a bank. The other nice thing about leasing is you don't pay all the sales tax and you don't pay it all up front. You only pay tax on each payment and you pay on the amount you are using. A lease also doesn't show up as a huge debt on your credit score - it just shows up as a payment. Leasing doesn't really make sense for an individual, but through a biz it can be very useful. If you want section 179 and bonus depreciation you need to buy (finance). If the vehicle is over 6,000 pounds you def want to buy.

  • @ashleyturner4483
    @ashleyturner4483 Год назад

    Love this

  • @Tempa310
    @Tempa310 Месяц назад

    Loved this

  • @clem-gyre
    @clem-gyre 5 месяцев назад

    Thank you so much!

  • @pech_wake_day1153
    @pech_wake_day1153 2 года назад +12

    Buying both my vehicles to be able to run my business. Yes they will be used for some personal use but mainly to operate the biz. Thanks guys, best FREE info on RUclips.

  •  Год назад

    Love the channel

  • @barberdannycutz8445
    @barberdannycutz8445 Год назад

    So much value in this video thank you so much I greatly appreciate it liked and subscribed!

  • @alexmendez3217
    @alexmendez3217 3 месяца назад

    If I had a rental or Fleet business definitely going the lease route. Saves you a ton of headaches.

  • @heavenavorque7916
    @heavenavorque7916 2 года назад +1

    Good info. Thank you.
    You forgot to mention recapture if vehicle is disposed.

  • @6MTLIFE
    @6MTLIFE 2 года назад

    Great video Sean. I'm eyeing the model S for my business car maybe in about 2 years.

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Thanks! Do you have a car that you use for business now? But yeah I love that car

  • @jodahamunra686
    @jodahamunra686 2 года назад +10

    This was very informative. For me being a "Car Guy", I would purchase if the car was to be kept for my
    personal Collection. If the car was just something I wanted to just drive to experience... I would lease.
    As for the methods of depreciation, I prefer the Actual Expense method... #Hotep

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Thanks for sharing, I love that perspective!

  • @Justin-qf9ip
    @Justin-qf9ip 2 года назад

    Great content topic! In my opinion, buying and leasing seems feasible depending on your circumstance and budget.

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Exactly! Do you currently have a business vehicle? Curious what you do

  • @johnouillette2708
    @johnouillette2708 Год назад

    Great job young man!

  • @davidrivera953
    @davidrivera953 Год назад

    I am interested in getting a used truck under 6K lbs to use for both personal and business. What is the best bank loan for a new startup I should consider, my business has not launched yet, but this is my first step and I need this to move into my primary business entity land ownership for rental properties. I have a budget of $30K for the vehicle and will use the SBA for my Veteran Loans and grants. Thanks for any advice you can share.

  • @user-bs7qk5tm3o
    @user-bs7qk5tm3o 5 месяцев назад

    Bro you look just like the guy who does the aggressive dance offs against the green screen " bust it out 🎵 bust it out 🎵",

  • @9erfanatic1
    @9erfanatic1 2 года назад +1

    Please do one about depreciation

  • @spirokalu
    @spirokalu 2 месяца назад

    Thanks for the tips! Question: I currently have a mobile business, own my vehicle (paid off), and use the standard mileage deduction. My CPA said once I chose this method I can't switch to expense method. I plan on getting another vehicle for 100% business. In the video you said if I lease, can I write off lease payments as well as the standard mileage. Can I write off the insurance payments as well? Thanks

  • @millonariosconcheys6012
    @millonariosconcheys6012 2 года назад +2

    Always great video,The next video how to buy a car under llc

    • @LYFEAccounting
      @LYFEAccounting  2 года назад +1

      Great suggestion! I’ll add that to my ideas list

  • @lHurtYourFeeIings
    @lHurtYourFeeIings Год назад

    He forgot to mention the advanced subject, Lease Inclusion Amount. You need to reduce the lease deduction if the car value is up to certain annual limit. This prevents business owners from deducting a Ferrari lease.

  • @Pauline-hr3kl
    @Pauline-hr3kl 6 месяцев назад

    I would definitely buy.

  • @DonRonLyfeStyles
    @DonRonLyfeStyles 2 года назад

    So you can use the actual expense method and use the depreciation bonus in one tax year?

  • @912livewithaglobalmind3
    @912livewithaglobalmind3 10 месяцев назад

    What if I buy a vehicle before I started my business but I’ll write it off text time business, mileage, and least an insurance

  • @rowandagres5219
    @rowandagres5219 Год назад

    Do a video on depreciation

  • @Salamander3k
    @Salamander3k Год назад

    Does putting your logo on your business vehicle while driving considered as advertising thus tax credit for advertising and miles driven? Would I have yo have that auto in a video if I created content?

  • @talentpopteam4101
    @talentpopteam4101 5 месяцев назад

    If you end up depreciating the car and then sell it at a later time are you required to pay gains tax (if you make profit) and pay back depreciation for that vehicle?

  • @amils_placid_place3419
    @amils_placid_place3419 4 месяца назад

    I am a 1099 worker for Uber, Lyft and hutch. I just l financed/ leased a 2023 Nissan pathfinder could I apply these same methods?

  • @LetHimCook_Entertainment
    @LetHimCook_Entertainment 6 месяцев назад

    When you buy the business vehicle, does it have to be bought with business revenue? Or can I personally get a loan

  • @niceatwhatido
    @niceatwhatido Год назад

    If I lease my business vehicle and it's over 6000 lbs and I still use the tax bonus tax deduction?

  • @Danielm316
    @Danielm316 4 месяца назад

    Great information video, I am a property manager and I am hired by property ownership could this be considered as a business?

  • @houstonshomeautomation3524
    @houstonshomeautomation3524 2 года назад

    At least an eBay that I use for my business and I'm planning on buying a hybrid to for my wife That is solar powered the new Hyundai . The cost Of the least payment and fuel costs and insurance is still less than the gas payment that I was paying per month on My old many man by $200 by $200

  • @themulti-coloredcanary5795
    @themulti-coloredcanary5795 4 месяца назад

    I'm a sole proprietor. I'm trying to decide if I should go LLC and put a car in my business name or should I just stay sole proprietor and if so can I put the car in the name of the business if I'm a sole proprietor because I always thought being a sole proprietor was just like being a person not necessarily a business. I have no idea what to do as I'm just beginning on this journey

  • @daverenawhite6183
    @daverenawhite6183 4 месяца назад

    I bought my vehicles. I lease one of them to my business for business purposes.

  • @Tico_Inversor.
    @Tico_Inversor. 6 месяцев назад

    If I buy a property, and I put it under LLc , do I have to do the same if I buy a car ? 2 different LLC? Or the car can be under personal name ?😊

  • @hkdmusic719
    @hkdmusic719 2 года назад

    Is this for Canadian tax system?

  • @guerlinemacean3684
    @guerlinemacean3684 Год назад

    Lease always make more sense for me.

  • @elishamasoniv152
    @elishamasoniv152 Год назад

    Wait so you can lease a new car every year helping with the high beneficial tax cut right?

  • @lewisdesotoart
    @lewisdesotoart 3 месяца назад

    Question: can you deduct capital cost reductions on leases?

  • @aaronverdun3670
    @aaronverdun3670 2 года назад +1

    Buy

  • @CantrellMosley1
    @CantrellMosley1 2 года назад

    I’m new here and I’m really enjoying your channel. Man I wish I knew you personally lol

  • @kevingrohoske8054
    @kevingrohoske8054 2 года назад

    Great video as always! I do have a question... If you use the bonus depreciation in the first year and write off the entire purchase price of the vehicle, do or can you still use standard mileage deduction?

    • @LYFEAccounting
      @LYFEAccounting  2 года назад +5

      If you take bonus depreciation then you cannot take the standard mileage deduction

    • @kevingrohoske8054
      @kevingrohoske8054 2 года назад

      @@LYFEAccounting Thanks for the reply. last question. Can I still get reimbursed for my business miles from my LLC to myself personally even though there won’t be any other deductions taken by my LLC because 100% bonus was taken? I’m currently electing S-Corp and have a monthly expense report.

  • @kayjay9484
    @kayjay9484 Месяц назад

    What if I'm a landlord and I advertise on my vehicle about my rentals, how would my vehicle be looked at as a expense. Thanks

  • @adambrown7616
    @adambrown7616 Год назад

    Can’t you buy a car at the end of the lease?

  • @genjimccorkle5518
    @genjimccorkle5518 9 месяцев назад +1

    I prefer cash flow. :D

  • @pshengcbr
    @pshengcbr 2 года назад

    If I leased a vehicle and used the Actual Expenses method and later do a lease buy out at the end of the lease term, can I then switch to the Standard Mileage method and take depreciation?
    Thank you, this was a very educational video!

    • @mace400
      @mace400 Год назад

      Of course. Once you switch to financing you then own it. You can use depreciation

  • @lgillis4600
    @lgillis4600 2 года назад +3

    More on depreciation, please

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Noted, thanks for sharing! Do you have a business vehicle?

  • @boystobusiness
    @boystobusiness 2 года назад +1

    Wow your content is amazing, exactly what I needed. I own a vacation rental company ( Airbnb). I focus manly in luxury real estate space with 5 homes with 2hours of my home. I want to lease a corvette next year to use 50% of the time for business.
    I’ll earn 500k on revenue this year and hopefully a million next year. Is it necessary enough for someone like me to lease a 80k corvette and not get in trouble with the IRS??

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Man great questions! I’m going to be honest, (not trying to sell), but for me to answer this I need more information on your business and personal finances. Would you consider booking a 1-on1 consultation?

    • @boystobusiness
      @boystobusiness 2 года назад

      @@LYFEAccounting because I don’t have too many questions I think that a 30 minute session might work

  • @ashleyturner4483
    @ashleyturner4483 Год назад

    Looking at having my son lease

  • @mwheels9117
    @mwheels9117 6 месяцев назад

    Why don’t we want a huge deduction if we have very little profit or taxable business income?

  • @mrogerolds1491
    @mrogerolds1491 5 месяцев назад

    buy

  • @LivinginHoustonTX-Adrian
    @LivinginHoustonTX-Adrian Год назад

    I thought you couldn’t depreciate a leased vehicle?

  • @WestaeastMusic
    @WestaeastMusic 4 месяца назад

    Don't leases require you to put some money down?

  • @eperkins14
    @eperkins14 2 года назад +2

    Great video. Quick question, if you’re employed (w2) and self employed- real estate agent / landlord (1099) can the vehicle deduction off set my W2 income ?

    • @LYFEAccounting
      @LYFEAccounting  2 года назад +1

      Well, kinda. It may be more appropriate to state that active business losses can offset W2 income. You just gave me an idea for a video, thanks for the comment!

    • @eperkins14
      @eperkins14 2 года назад

      @@LYFEAccounting I modified my question so it reads more appropriate - guess I got to excited after watching your video lol. Well, I hope you make the video in the near future - I’ll be sure to watch it, as I’m subscribed to the channel. You’re making a real difference for people - thank you.

  • @lt_thebrand
    @lt_thebrand Год назад +1

    Lease

  • @kingmitchell653
    @kingmitchell653 2 года назад

    What leasing company do you recommend?

    • @LYFEAccounting
      @LYFEAccounting  2 года назад

      Did you know most car dealerships have financing and leasing options?

    • @kingmitchell653
      @kingmitchell653 2 года назад

      @@LYFEAccounting going to the dealership doesn’t seem like a good idea. They’re known to run your credit several times and I don’t want that. I was hoping for a more direct answer.

  • @ChrisYbarra-on8wy
    @ChrisYbarra-on8wy 9 месяцев назад

    Purchase a car

  • @Incognitohacker12atGmail
    @Incognitohacker12atGmail 2 года назад +69

    This was the best information that I have EVER come across. As a Financial Advisor I am always looking for people to support clients that have these issues and can explain what is going on without them "wasting" money with no results. I will definitely support this recommendation CREDITROYALE NET to all of my clients when I see they have a credit issue. I have been hood winked by so many companies and people in this line of business and I am excited that theyre a team of integrity to actually help people

    • @EmailmeDavecousinsaTgmai-en7wk
      @EmailmeDavecousinsaTgmai-en7wk 2 года назад

      As a Realtor in the area, I have had to refer some of my clients to credible companies that specialize in credit repair. CreditRoyale is one of the best out there

    • @EmailmeDavecousinsaTgmai-en7wk
      @EmailmeDavecousinsaTgmai-en7wk 2 года назад

      As a Realtor in the area, I have had to refer some of my clients to credible companies that specialize in credit repair. CreditRoyale is one of the best out there

  • @Get_A_Free_Cash_Offer_RN
    @Get_A_Free_Cash_Offer_RN Год назад

    Buy