Hello everyone, I have been using my personal car for my janitorial business for the last 2 years. I am (thank god) financially capable to buying a truck for business use exclusively. My question is, for tax purposes, what is my best option. Paying for truck in cash, loan, or a lease?

The business profits about 5k a month and it’s very low maintenance. Plus I bring another 6K in my personal 9-5 income.

Thanks I’m advance!

  • Sufficient_Language7@alien.topBEnglish
    1·
    1 year ago

    I would say a loan. Because if you are going to continue and growing your business you will need to keep the vehicle for while. With leasing in 3 years you are back to were you are right now.

    With cash you would have to save all that cash while you should be using it to buy other equipment or anything else you business needs to expand.

    Remember, growing your business will make you more money, more than the tax bill will ever be. When you level off for a bit, then look for ways to reduce cost, taxes are a cost.