Leasing a car for an owner operator business?

Discussion in 'Ask An Owner Operator' started by TallJoe, Apr 19, 2019.

  1. TallJoe

    TallJoe Road Train Member

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    Since I have my corporation, is that a viable option? Now, when my 2nd "junk" car's repair is beyond economical sense , instead of replacing it, I thought about about leasing a brand new one for business (Toyota Camry - no! small pick up - Nissan Frontier- for instance). I'd use it for business; going back and forth to a parking lot and letting it sit there while I am on the road. The mileage would be much less than 5K miles a year.

    I could use Uber/Taxi but the monthly lease payment would still be less than that plus when I am home I need another vehicle to move around - my wife is not always available to ride with me. Is there anything wrong with that line of thinking? Perhaps, in theory, you cannot use a business leased car for personal use at all but let's just say there is not going to be any Personal Use ;).
     
    Last edited: Apr 19, 2019
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  2. buddyd157

    buddyd157 Road Train Member

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    i know a business owner, that uses his personal vehicle for going for supplies. no by the way, he is not a trucker. but anyway's, he MUST jot down the starting miles, ending miles (round trip) and he cannot go off route and do other NON business errands when he gets his supplies. then at tax time, he takes that simple paper work to his accountant.

    if you lease a vehicle for your business, i do believe it has the be registered under the business name, address, etc. this in turn, could very well mess with the leasing company, as it is now for business use, and NOT personal use. they could hit you up with a whole different mileage use plan, and hold you to STRICT guidelines.

    so how about this..."go see a professional CPA, and get HIS (or her) advice..????
     
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  3. RoadRooster

    RoadRooster Road Train Member

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    Have you thought about renting a car/truck when you are home? Probably about $25 per day. No insurance, no storage, no maintenance, pick it up clean, give it back dirty...
     
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  4. Ridgeline

    Ridgeline Road Train Member

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    Yes you can but you have to justify it with the auditor if you get audited and it may trigger one.

    I just use mileage for all my company business, it is better for me.
     
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  5. Scooter Jones

    Scooter Jones Road Train Member

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    Man, my old boss leases a new Tahoe, fully decked out, every year through his business.
     
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  6. Midwest Trucker

    Midwest Trucker Road Train Member

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    My company bought both of our last two vehicles. For you the car sort of is for business. You can’t drive your truck as a personal vehicle so your business needs to provide you transportation. Same as if you ubered everywhere and deducted that. Makes sense to me. lol

    As long as this is the only area you are sort of stretching things I think you’ll be just fine man.
     
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  7. TallJoe

    TallJoe Road Train Member

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    And it is not a sham intent at all. Yes, I would not mind occasionally go to Home Depot and pick up a few bags of garden soil or get my kid to school on my way to work too, but who would not, including the most zealous IRS auditor?
    With a pick up, I could bring pair of tires or a take the drive-line to a shop for balancing. The car that just broke down on me was a personal vehicle which 98% served as a means for getting me to the truck and back home. I mean, it was a 98% work dedicated vehicle of which wear and tear I never deducted a penny. Yes, before I make any decision I'll ask my accountant but here I wanted to see, if someone already has done something like that.
     
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  8. Ruthless

    Ruthless Road Train Member

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    Yes, you can.

    **id buy though, leasing you write off the lease payments, buying you can depreciate as you see fit, 1 year, 2, 4 etc
     
  9. zinita17601

    zinita17601 Heavy Load Member

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    If you lease a car thru the business you have to have commercial insurance on it,i got quoted little over $2000 a year with clean record,didnt make sense to me so i opted not to.
     
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  10. TallJoe

    TallJoe Road Train Member

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    Good to know! I'd definitely need to ask about it too.

    I'd need to ask about the risk of it triggering an IRS audit also. Not that I would sweat because of it but who wants to have that pleasure...I'd tell IRS; had I been able to park the truck and trailer in my backyard, I would not need the 2nd car...

    Basically speaking, I am looking for a way to include the costs of using a vehicle (approximately 3000 - 4000 miles a year + tolls) for commuting to the truck. Since I own a business for the last 5 years, I was thinking why not to include this in the costs since this is a very business related expense ( unless I am incorrect about it).


    Perhaps buying another personal vehicle and writing off gas and miles would serve me better. When I was a company driver, my accountant at the time told me that it was not an option.
     
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