October 27, 2007

Leasing a Car

If you are a small business owner, you may find that the best way to have access to a company vehicle is to lease it. Leasing is a great way to have access to a vehicle for business as well as having the cost of the lease and operating it to be tax deductible. Here are some tips on leasing a car.

Many small business owners realize the inherent value in leasing a car for business. If you use a car primarily for business, you can easily lease a car and have the majority of the cost deducted from your taxes. There are many rules and procedures involved, but for legitimate small businesses, this is a perfect way to cut down on legitimate business costs.

Leasing a car for a business usually requires you to have a corporation or LLC and register the car as a commercial vehicle. Commercial vehicles usually have special plates and fees associated with them. However the cost of operating and paying for the lease of the car is usually tax deductible. If you don't lease a car and use your vehicle for business purposes, you still can deduct mileage costs on taxes. The present rate is about 44.5 cents per mile.

Leasing a vehicle is a very easy process, almost every auto dealer is able to lease you a vehicle. Leasing a vehicle usually requires an acquisition fee as well as other small fees, but you usually only pay for the mileage and wear on the car. For many people that drive seldom and take good care of their car, leasing can actually be less expensive than buying a car outright.