Quote:
Originally Posted by BGM-M3COMP
If you have good credit, it's relatively easy, as long as you actually make a decent amount, doesn't have to be over 100k.
If you lease, even easier.
Some people have businesses, and can write off cars like these. Not sure how that works entirely but my friend has an LLC and a brand new escalade. He said it was basically, "free". I'm sure he's making some type of payment though, not sure what or how much.
|
It's basically if you drive a lot for work you can deduct, dollar for dollar, the percentage of the lease cost that you use the car for business. The catch is, driving to and from your principal place of business doesn't count. Say you have an attorney who drives his F95 1000 miles a month. He works from home, but commutes to his main client's office, court and other business related errands to the tune of 700 miles/month. The remainder of the mileage is personal or non-business related. Say the car payment, gas, insurance and non-warrantied maintenance averages, for the sake of round numbers, $1000 a month. He/she would be able to deduct from their gross income, provided they itemize and use the actual expense method, 70% of that cost per month or roughly $700/month or about $8400/year. That's very similar to my example only the numbers are a bit different and since COVID I'm basically only driving for work. The net effective car payment is almost $150/month. Lowers your income, which lowers your tax bracket. And it's all perfectly legal. Don't even need an LLC really.