Buying a vehicle for my business – cash versus financing, and how much may I use it for personal use?
I own a six-month old single-owner LLC, which I operate out of my house. I want to purchase a car to use for my business. My company is a telecom-consulting business, so the primary use for the car would be to drive to client appointments and to take packages to the local shipping store. I typically don’t do much personal driving during the week after business hours. I am not sure if I should pay cash for the car, or if I need to finance the car. Which is a better write-off? My wife has her car, and we use it primarily for family functions. So, how much could I use the company car for my own personal use without the risk of doing something illegal (tax-wise)? My wife would probably never use the car, even though she is technically an employee. A: As with many things, don’t be blinded by the tax implications of the decision. Tax impact needs to be considered of course, but should NOT be the overriding consideration. It’s just one of many factors. Although you can take a business expense
