Lease vs. buy WRT a vehicle and a small business

Posted by Andrew DeFaria on October 9, 2007, 11:13 am

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Sort of off Quicken related but I've been thinking about leasing a new
car. Now I run a small business and I've heard that often leasing is not
the right thing to do but in certain conditions and involving small
business leasing can be advantageous. Anybody know what are those
conditions when leasing is better than buying? If one has a corporation,
would it be better to put the lease under the corporation instead? If
there are better places for this question kindly point me in that direction.

Oh and to make it semi-Quicken related, how would one best account for a
car lease in Quicken Home & Business?

Thanks in advance.
--
Andrew DeFaria <http://defaria.com>
It doesn't matter what you do in the bedroom as long as you don't do it
in the street and frighten the horses

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Sort of off Quicken related but I've been thinking about leasing a new
car. Now I run a small business and I've heard that often leasing is
not the right thing to do but in certain conditions and involving small
business leasing can be advantageous. Anybody know what are those
conditions when leasing is better than buying? If one has a
corporation, would it be better to put the lease under the corporation
instead? If there are better places for this question kindly point me
in that direction. 
 
Oh and to make it semi-Quicken related, how would one best account for
a car lease in Quicken Home & Business? 
 
Thanks in advance. 
<div class="moz-signature">-- 
<a href="http://defaria.com">Andrew DeFaria</a> 
It doesn't matter what you do in the
bedroom as long as you don't do it in the street and frighten the
horses
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</body>
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Posted by Rick Blaine on October 11, 2007, 11:53 pm

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>Sort of off Quicken related but I've been thinking about leasing a new

>car. Now I run a small business and I've heard that often leasing is not

>the right thing to do but in certain conditions and involving small

>business leasing can be advantageous. Anybody know what are those

>conditions when leasing is better than buying?

AFAIK the only advantage for a small business is the same for an individual: you
trade buying the vehicle outright for paying more over time. You also don't have
to deal with disposing the vehicle later.

> If one has a corporation,

>would it be better to put the lease under the corporation instead?

Either way, the IRS is pretty strict about personal use. If you plan on using it
to drive to and from work and on weekends, be prepared to document every trip in
a log book and pay taxes on the imputed value...

--
"Tell me what I should do, Annie."
"Stay. Here. Forever." - Life On Mars