I personally financed the van for my business – how to put it on the books/have company take over payments.

 

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I personally financed the van for my business – how to put it on the books/have company take over payments.

Hello,

I have recently begun a single owner LLC. Today I financed a new van. The van will be for 100% business use.

Can I record the van on my books? I want to show that I paid the down payment and I am making the payments, and for the company to reimburse me. Do I simply put these under owner contribution?

Is there a legal transfer to the business?

If I purchase parts for maintenance on the vehicle can the business foot these aswell?

Is there any tax deductions available to me for this purchase?

Thank you very much.

I personally financed the van for my business – how to put it on the books/have company take over payments.

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2 Replies to “I personally financed the van for my business – how to put it on the books/have company take over payments.”

  1. The tax treatment is going to be the same here, either way, if you are a sole proprietorship that has not made a S Corp election. So there is no need to put it on the company books for tax reasons. Ebay type of insurance policy is on it? That’s what you want to make sure is a business policy.

    The down payment isn’t deductible either way. Depreciation is what’s deductible. You need to see bonus depreciation, 179 depreciation, or straight line depreciation makes more sense for you.

    That all factors into if you will deduct actual maintenance, or take the per mile rate. How many miles a year do you drive this for work? High miles and the standard rate may be the better option.

    Are you business profits this year more then the purchase price of the vehicle?

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