My accountant said I can write off the new GT3.

I need some help with a leasing company. PCNA is trying to hammer me on the money factor.

I would love to find a company that would let me guarantee the residual.

Any help would be great.

 

go to an independant lease company.. like some do with Lambo's

 

I know of a ton of reputable independent leasing companies, where are you located? Shoot me a PM/email, and I'll send you over some good contacts near you.

 

PM me the name of your accountant.

 

There's tons of ways to do it, even if you're not leasing the car....for instance, forming another company as a race team/marketing outlet....

 

FWI.....

Here is what my Accountant said to do.
Lease the car through a leasing company. Lease for 3 or 4 years and accelerate the payments. At the end of the term the car is well below market value. I can write off 80% of my payments as company use. I will split the payments between two of my companies. Each company will be paying 40% of the payments.

When the lease is up the company sells the car to my Daughter, she then sells the car when she is done with it ( the next day ). takes the procedes to pay for college expenses. Works for me. That way I can give her $$ for college and have a tax benefit to boot.

Any one have any comments???

 

Two things Joe:

1) Your daughter will have to pay capital gains taxes for her gain on sale.

2) Be careful of a fraudulent conveyence of an asset for less than fair market value to a RELATED PARTY. For instance, the IRS would say that YOU should sell the car to your daughter at FMV and recognize the gain on sale, rather than the other way around.

Just trying to keep you from stepping in doo-doo with our friends in DC!!!!!

 

I believe there is a limit to the deduction for a luxury car, does anyoe know? I think it was less that $1K a month.

 

No limit......

 

Point well taken, As long as I am within the realm of fair market value for a used Porsche. I doubt the IRS will be in the used car business.

As far as the gain on the sale. If she make no money she can claim it on her taxes correct? A $5,000 to $8,000 gain for her will come back to her at the end of the year on her tax return. Correct?? or am I wrong about the tax laws.

I will not planning on selling the car so this whole thing is just a conversation.

 

If she has no earned income and is a dependent on your tax return, then her standard deduction is only $800 (assuming '05 tax law); therefore $5000 gain - $800 std deduction = $4200 taxable income.

 

start picking out a nice cell.

your gonna need to keep detailed usage records for your audit (especially for anything claiming above 50% business usage).

not to mention transfering an asset to a related party below market value (the purchase funds better not be linked back to you, fyi).

she will need to pay taxes on any gain

 

Couple things.
Definitely try and use a third party leasing company (like leasecompare.com). I used them for my 04' turbo...great rates. Unfortutely, depending on when your GT3 arrives, 3rd party companies might not have residual number yet. When I leased myt 997 GT3, no 3rd party companies had numbers, so had to go with Porsche Financial...crappy money factor .0035.

As for company write-off (I've been doing it for years), yes it is true you can write off the entire lease payment. HOWEVER, you must add back what's called an "inclusion amount". This essentially negates the loophole of claiming execessive depreciation. See IRS publication 463 and publication note for property over 100k (Year 2005 numbers)

http://www.irs.gov/irb/2005-12_IRB/ar15.html

So if your lease payment is $2,000 a month on a 115k car on a 3 year lease you would be able to write off the following (assuming 100% business use, otherwise multiple number by business use percentage):

Year1: $2,000 - $459 or $1,541
Year2: $2,000 - $1009 or $991
Year3: $2,000 - $1009 or $991

Write-offs get even worse on longer term leases (of course your pmt would be less than $2,000, but if it where the same):

Year1: $2,000 - $459 or $1,541
Year2: $2,000 - $1009 or $991
Year3: $2,000 - $1496 or $504
Year4: $2,000 - $1795 or $205
Year5: $2,000 - $1795 or $205