Car leasing vs. buying (taxes, etc...)

[dogface]

Ok, if I accept here would be the scenario...

Company A does not provide a company car, but they provide a monthly vehicle allowance. Let's say it is $450 a month, they then also pay .18 per mile on business related travel. Travel to customers, lunches, dinners,etc. basically any travel can be paid on except to work, and home form work. (Unless you go to a clients first, then to the office, and then on the way home you stop at a client, etc. That is how you get all of your mileage accounted for.)

What is the best option to do here. I can expect at least over 30k in miles a year, do they have leases with that high of a mileage count. (I know companies get them when the provide us with cars, but how can we do it as an individual?) GF leases here car, and is on 10k a year.)

Or do I buy a used auto, get the large hit out of the way buy doing so, and then be uspide down in a few months with high mileage?

How is all of this done with taxes, what is the best way to minimize them and maximize income? Clueless on this, as I have not been apart of this type of program?

Thoughts, I ideas? WOuld be great to lease, if I could out the high miles on it! Less worries about repairs, etc!!!

Thoughts? (Or anyone do this and have it figured out?) :0corn

 

[dogface]

Mileage Reimbursement
Even though the standard mileage deduction rate published by the IRS is 55
cents per mile, you are not required to reimburse this amount. It is the employers
choice what rate an employee will receive for business mileage reimbursement, if
any. If you use a rate less than 55 cents, the employee is allowed to claim a
deduction for the difference on their personal tax return as an itemized deduction.

AM I reading this right? If getting paid only .18 a mile, and can then deduct .37 per mile. (That is an $11,100 deduction on 30k miles a year. Nice deduction!)


dogface

 

[Cie]

AM I reading this right? If getting paid only .18 a mile, and can then deduct .37 per mile. (That is an $11,100 deduction on 30k miles a year. Nice deduction!)


dogface

That's how I'd do it.



I know nothing about leasing, so can't help you there, but I know what has worked for me.

I try to buy a 1 year old vehicle with less than 10K miles. This way you get the bulk of the manufacturer warranty. My current vehicle is a 2005, which I purchased with 2800 miles in April, 2005. I'm at 98K miles now, so I drive roughly 22K/yr. I purchased the vehicle for below blue book value, and in the next few months I'll sell it below blue book value and start over.

 

[dogface]

Are you then doing so every few years? Certain mileage you get to before looking at selling, or do you trade-in?

Do you also get the deduction? That seems to be a nice deduction...

dogface

 

[djv]

Government standard for mileage I believe is over .38c.
Also I maybe wrong. But keep good records. I believe basic upkeep oil changes ect all can be deducted to. But I think you can do same if you buy car out right. But check priceing. Leasing can be cheaper payments.

 

[dogface]

2009 I it is .55, but apparently it is a guideline. You can do whatever, last year it rose to .58. So I underastand you can deduct the difference...

dogface

 

[djv]

Im sorry I once had my chit togeather on this stuff. But been 8 years now since retiering. And rules change all the time. But someone here has to have it dead on. Even Auto dealership may help.

 

[djv]

New Job. How big will your territory be.

 

[dogface]

New Job. How big will your territory be.

Around the Southern and Western parts of Minneapolis. Roughl estimate around 25+35k miles a year...

What are thoughts on these:

http://www.morries.com/detail-2007-mercury-montego-4dr_sdn_premier_2wd-4456612.html

I am ok with color, not that excited. But seems some value there.

http://www.morries.com/detail-2006-lincoln-zephyr-4dr_sdn-4405982.html

A little smaller, but I like the look better...


http://ps.getauto.com/dealer/details/7638/2G1WT57KX91140444/

http://ps.getauto.com/dealer/details/7638/2G1WT57N591158280/

Hey, I needed optons!

 

[vinnie]

I am ok with color, not that excited. But seems some value there.

http://www.morries.com/detail-2006-lincoln-zephyr-4dr_sdn-4405982.html

SpongeDog U can sell Mary Kay on the side with this one :142smilie


no seriously the last one looks like a nice car :shrug:

 

[WhatsHisNuts]

SpongeDog U can sell Mary Kay on the side with this one :142smilie





.

:mj07::mj07::mj07::mj07::mj07::mj07::mj07::mj07::mj07::mj07::mj07::mj07:

 

[djv]

I was wondering if you would get down to La Crosse. First Pepsi was on me.
Autos. My son has that Merc and has good luck.
The Linc looks good. Some times that can be bad. Younger first time driver that woerked it hard. At some those prices you should be able find a deal offered leased new. Forsure you want good milage. But first a little larger car when your going to be on road so much for your Safty. Check your Chev dealer I saw on net someplace where they had 08/09 Impal leased low ball price. I thought it was a St Paul dealer. Size and milage.

 

[dogface]

I have been to LaCrosse numerous times. My ex-wife has her grand parents and some extended family there. We used to take my little guy down there by train for fun in the winter! She originally hails from Sparta!

I am going the the Chevy dealer today, as they are continually going down on their prices on them, and you get the 100k mile warranty on them. That works for me! I do like the Zephyr as well for looks, I drove the Montego last night, I like that command seating in it!


dogface