Tax exemption question...

2 Replies

I'm just starting out flipping houses in long island. First house I flipped was under my name and now goal is to get everything formalized and really stream line my business.

Just formed a new LLC and I'm looking to either purchase a new car or lease a new car. This car would be used for my 9 to 5 job and to run around looking at houses and purposes of my business

Question is what is best strategy.. should I buy or lease..  what are my exemptions in either case ? thank you.

I'd like to know these answers as well. My thoughts would be that on a lease you just write off the percent of business use. So if you use your car 90% for business and 10% for personal, you just write off 90% of your lease payments. On a purchase I know if it meets certain requirements you can write off of big chunk of the initial purchase in the first year that you buy a car for business purposes (it needs to meet a certain size/weight). In addition you can deduct .55 cents per mile (or whatever the current value is set at for 2018). 

Neil Goradia, Broker in Indiana (#RB17001290)

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