Just found out why companies have a leased brand spanking new 2016 "company car"

just found out why companies have a leased brand spanking new 2016 "company car"

ITS A FUCKING TAX WRITE OFF

wow

elaborate?

>spend $6000 per year leasing an overpriced car
>get $2000 back on tax returns

...

But they're loosing money leasing the car?

don't know what guy is talking about but I heard you can write off the whole lease on your returns if the car is used only for your business.


>Agree to paying $300/m to rent car
>Pay $3600 for a year
>Return car after a year
>Write off $3600 on your taxes
>Buy new model car

Hell you might even be able to write off the insurance too, either way you would have to pay it so no harm no foul.

Doesn't seem worthwhile unless you really need the status symbol of a brand new car.

I want my employees to drive new cars, doesn't that sound cool coming to work in a car that's paid for?

>"Hey Jerry, would you be a cunt & pickup dinner for the office?"
>"Oh yea & get some toaster strudelswhile you're at it"
>"Love me some damn strudels"
>"Hell might as well use the company Bugatti, I'm starving."

that's not what write off means you dumb fuck

elaborate

would you rather give 3600 to your friend running the car rental business.

or 3600 to the kikes in government?

That's not how tax deductions work, idiot. You might have a point if the car dealer is family, or there's some quid pro quo.

this makes no sense to me

>tax returns
>running a business

Hahahahahabahahaha

ways for people to use companies for personal assets

knew something was fishy about that post

you just made it worse

Yes this is indeed a fine strategy for ownership of a car.

The basic mechanics as I understand them, I've never done it but I've talked with one guy who does it.

Business Leases the Car for the Shortest term possible, 2 years if I remember.
When all is said and done you have most of the car paid for in 2 years.
Then then the advanced depreciation and the lease premiums are written off.
Sell the car to yourself for "reasonable market" value at a loss to the company.

You end up buying an 80k car for 30k when all is said and done.

You do lose on the transaction float however. You needed enough idle cash to handle this transaction for the letting period. and can afford the lost gains by floating 80k over 2 years. Even though you get 50k off. Its a decent play if you're willing to lose that.

...yes it is you idiot.

1) Company A leases company cars for executives from dealership B. Dealership B gives competitive lease prices and no-questions-asked returns/repairs; Company A pays leases on time automatically, guaranteeing the dealership cash flow. Quid pro quo.

2) Government wants to charge Company A taxes, but recognizes that Company A spending money in the economy benefits the government indirectly, and thus provides tax credits for Company A leasing cars from Dealership B. Company A essentially receives a tax cut for participating in the economy. Dealership B gets good business and positive cash flow. Government benefits indirectly from having 2 companies to tax instead of 1.

This is how tax credits are designed to work. The quid-pro-quo is pretty explicit and endorsed by the government here; "the government will offer you tax incentives to participate in your local economy, because you spending money in the local economy helps drive our overall tax revenue up."

The government doesn't care if they collect taxes from you or from someone else, so long as we get taxes from someone in that transaction chain.

people can live with no income but have lots of assets through their businesses
tax loopholes and whatnot

It's a business expense... wow mind blown

Are you Chinese?