By Dr. James M. Dahle, WCI Founder
I often hear docs and other small business people mention how they are so smart for having their business lease their car. While I’m sure there is a situation where this has worked out well, most of the time it is a mistake, and most of those who are not convinced that it is a mistake are cheating on their taxes. Let me explain.
Separating the Issues
There are really two issues to talk about here. The first is whether your business should own (or lease) a car or whether you should do it personally. The second is whether the car should be purchased or leased. It’s important not to conflate these two issues. Before we get to those questions, you need to understand some background information about how this stuff works.
Business Deductions Are the Best Kind of Expense
Any expense in your life that can be taken as a business expense should be taken as a business expense. You see, a business expense comes right off the top. It’s even better…
This article was written by The White Coat Investor and originally published on www.whitecoatinvestor.com