Announcement

Collapse
No announcement yet.

Car Lease tax write off for LLP?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Car Lease tax write off for LLP?

    Will be making partner in the near future, transitioning from a W2 employee to K1 as a LLP.

    Just curious if there is a potential tax write off of the lease payment on a new car, how much, how to effectively use the tax code?

    Thank

  • #2




    Will be making partner in the near future, transitioning from a W2 employee to K1 as a LLP.

    Just curious if there is a potential tax write off of the lease payment on a new car, how much, how to effectively use the tax code?

    Thank
    Click to expand...


    Only for business use. Cannot w/o for commuting expenses.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      Only the practice can deduct a car lease as a business expense if you are in a partnership. If you are in solo practice/independent contractor, you can only deduct the portion that the car is used to travel between business sites, e.g. between clinic and hospital. If the physician travels home->clinic->hospital->home in a day, the home->clinic and hospital->home legs would not be deductible.

      Comment


      • #4
        So if there are 8 partners. Instead of distributing the money to the partners the business can give them cars and the business can write it off?

        Comment


        • #5




          So if there are 8 partners. Instead of distributing the money to the partners the business can give them cars and the business can write it off?
          Click to expand...


          No, just like the business can't pay for the partners' grocery bills. The threshold for deducting business expenses is ordinary and necessary.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

          Comment

          Working...
          X