Lease or Buy
 

Ordered the wife a Turbo couple weeks ago. Going to be a company car. She wants to trade every three years. I am not up to speed on lease of a car. Actually never leased one before. We are switching company over from C Corp to a S Corp. Sales tax in Tn is 9.25% would I be better off with a lease over purchase ??? What can you write off with a lease. Not sure if you can use accle. Dep on a Cayenne I think the gross weight rating has to be 6k lbs to do that?

At this time she drives about 28 k per year but that is due mainly to 60 mile round trip to work. We bought new building that will make the drive only 9 miles. With that said I think 18- 20 k will be her avg miles. She use to car pool kids to school that added additional 200 miles a week but with three kids now driving that will drop miles down more also.

What would you do????

My understanding is that if you use the car in business (not just commuting) the amount you can write off is significantly more under a lease than a purchase. This applies to high dollar cars where payments exceed what you can w/o on a purchase. Hopefully someone who knows the details can elaborate on the specifics.

Thanks Bill guess I will have to call accountant to be sure but those dudes charge for every phone call :D. Guess you get what you pay for