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Buying car for business and personal needs

Asked by: Jonathan - 12 November, 2012 Have a business (LLC), and I plan to lease a car. I will be using this car roughly half the time for business and half the time for personal needs.

Who should I register as the owner of that car, myself or the LLC? What are the advantages and disadvantages of each scenario?
Answered by: Wray Rives - 12 November, 2012 Jonathan,

How you register the car will not really have any impact on the tax deductions for business use of the car.

If your LLC is a single member LLC that you report as a sole proprietorship, there is no distinction between you and the LLC for tax purposes. Your tax deductions for the lease payments and other expenses of the vehicle will depend on the amount of business use of the car.

If your LLC is something other than a sole proprietorship, such as an S or C Corporation, then registering the car in the name of the LLC, but using it less than 50% for business can actually create some additional reporting requirements.


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