What are the tax benefits of buying a car through my business?
If you intend to use the vehicle for both personal and business purposes, you could still expense the cost but you would only be allowed to expense the portion associated with business use. The IRS makes it very clear that you cannot expense vehicle-related costs for a business if the vehicle is for personal purposes.
Given the nature of your business, I would not recommend purchasing the vehicle through the business. If you rarely use a vehicle for business purposes you would not qualify for the business deductions.
Good luck with the retail bead business and please let us know if you have any other tax questions.
Ryan Himmel, CPA and registered securities analyst, is the founder and CEO of BIDaWIZ.com, a professional network for small businesses and entrepreneurs to obtain trusted advice and services from a team of CPAs, Enrolled Agents, Financial Planners & Tax Attorneys. His team provides answers to the many finance and tax questions that small businesses encounter every day. Ryan has been quoted in The Wall Street Journal, Forbes, Fox Business and Crain's New York, among other publications. Ryan also regularly contributes to the community with his finance and tax blog.