business auto leasing in wa

[biz_guy_2020]

Hello, I have an s-corp and my accountant recommended that I lease my next car under my business for tax advantages. Has anyone here done this in WA? What are the costs, benefits, rules and restrictions around this?

Are there any special questions that the dealer or state government might ask that I should be prepared to answer in a certain way in order to make sure that I can successfully lease my next car under my business?

[MyITGuy]

Honestly, these are all questions you should be directing to your accountant since you are already working with one as they will know your gross/net revenue, what you can/cannot deduct as well as your local/state requirements better than anyone on an anonymous forum.

[biz_guy_2020]

thanks myitguy. My current accountant has been doing my taxes for the last 10 years. He's the one who recently suggested to me that I consider leasing my next car under my business. My accountant is based out of CA so I'm sure he's not intimately familiar with the rules around leasing a vehicle under a business in WA.

Since there are tax savings to be gained on leasing my next car under my business, I want to make sure I understand all of the parameters. Also, some car dealers may not know what they're doing so I need to make sure that they process my lease correctly. I was hoping to get some first-hand expertise from people on this forum who have done this before.

[Fulcrum]

I've never understood the logic behind wanting to lease. I'm curious how much savings there actually are between leasing and buying.

Personally, I would rather own a vehicle outright rather than having to make that monthly payment and then the "buyout" at the end of the lease term.

[nealrm]

Make sure that your account knows the price range of the cars you purchased and the amount of mileage you drive. Then have him proved you with a cost comparison related to taxes. Also remember that spending an extra $10,000 to save $3000 in taxes does make sense. You would be surprised how many people believe that it does.

[Evan]

Bare in mind all of your personal use of a business vehicle is taxable to you, so make sure you keep mileage logs as you'll need it to justify whatever portion you're claiming for business use.

Your car may now also be subject to higher property taxes as commercial property is usually higher than personal property. Also don't forget you'll need to get a corporate insurance policy, so forget all the discounts you may get with your "personal" insurance with your "personal" car.