My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Finance

What are the tax benefits of buying a car through my business?

Guest Writer
Head of Financial Partnerships, Xero Americas
min read
Opinions expressed by Entrepreneur contributors are their own.
Generally speaking, if you intend to use a vehicle only for business purposes, then it would make a lot of sense to purchase or lease the vehicle with the company's funds.

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.

More from Entrepreneur

New York Times bestselling author Nicole Lapin can help you pitch your brand to press and strengthen your media training.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur