[pianotech] vehicle lease

[David Love]

Not quite.  I write off my mortgage interest but does that mean it lowers my
bottom line?  I'd be paying that anyway in some form.  Paper losses are just
that, paper losses.  If I lower my tax liability I may actually end up with
more money in my pocket where it counts.   

 

Lease or buy choices take into consideration many factors including things
like convenience, satisfaction in what you drive, maintenance costs and time
requirements, number of miles you actually drive, total income versus cost
etc.  There's no simple out of the box answer to the question of lease or
buy.    You have to analyze the monetary as well as the non monetary
factors.  I could buy a $1500 car but the uncertainty of repairs and
reliability, the actual cost and time involved in maintenance, rental cars
while it's in the shop, safety issues, etc. don't make it worthwhile for me
personally but I'm often working 6 days a week and log 15000 miles a year.
I leased my second car last year (Subaru) with virtually no money down
(small deposit, taxes and a month's payment, did this while turning in my
old lease which was slightly over mileage but which they waived so I would
lease another car from them.  Purchased a maintenance agreement which adds
about $15 per month to the lease but all maintenance for three years is paid
for and the total paid out is less than the actual cost of the mx assuming
you get it all done, which I do.  All costs associated with the lease
including insurance are deductible to the extent that the car is used for
business (over 90% in my case since we have another car that we use for non
business stuff).  At the end of three years I turn it in for something else.
My income supports that expense but it may not for everyone.  You have to
analyze it for yourself is my point.     It won't make sense for everybody
but it will for some.  

 

 

David Love

www.davidlovepianos.com

 

From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of Matthew Todd
Sent: Tuesday, November 08, 2011 6:35 AM
To: pianotech at ptg.org
Subject: Re: [pianotech] vehicle lease

 

David,

 

Whatever you write off as a business expense counts as a loss on paper, and
minuses against your total.  I guess if you don't need your income as a high
as possible (such as if you were going to buy a home), then you can write
off everything under the sun and also increase your red flags for a tax
audit.

 

TODD PIANO WORKS 
Matthew Todd, Piano Technician 
(979) 248-9578

http://www.toddpianoworks.com <http://www.toddpianoworks.com/> 

 

From: David Love <dlove1952 at gmail.com>
To: Matthew Todd <toddpianoworks at att.net>; "pianotech at ptg.org"
<pianotech at ptg.org>
Sent: Monday, November 7, 2011 11:41 PM
Subject: Re: [pianotech] vehicle lease

Leases use interest rates as part of the rate calculation. That current rate
is virtually zero. Whether it makes sense to lease or buy, take mileage or
actual expenses will vary with each person and their business model, income,
cost of the lease versus cost of the car, new or used (buying a new car
gives you the highest rate of depreciation) and some other factors. You need
to do the math. It's not necessarily true that the more you write off the
smaller your bottom line. Some expenses will exist no matter what but
certain situations allow you to write off more of those expenses thus
reducing your tax liability thus increasing your bottom line.  

 

It's best to seek the advice of accountants for these decisions rather than
piano technicians.  

 

I lease, btw.


David Love 

 


On Nov 7, 2011, at 7:40 PM, Matthew Todd <toddpianoworks at att.net> wrote:

I just bought a vehicle with 0% interest.  I paid taxes, registration, and
all extra costs out of pocket.  Waaaaaay cheaper than a lease.

 

I also didn't buy into the whole "you can write everything off if you
leased".  The more you write off, the smaller your bottom line is on paper.

 

TODD PIANO WORKS 
Matthew Todd, Piano Technician 
(979) 248-9578

http://www.toddpianoworks.com <http://www.toddpianoworks.com/> 

 

From: Tom Driscoll <tomtuner at verizon.net>
To: pianotech at ptg.org
Sent: Monday, November 7, 2011 1:44 PM
Subject: [pianotech] vehicle lease

List,

  Anyone out there lease their service vehicle ?

My Hyundai Santafe has been great but it's bigger than I need and I'm at the
tipping point so to speak. That is big $ repairs on the horizon.

 I'm thinking about a fuel efficient little wagon --Kia soul, nissan cube.
Chevy  whatever it it's called.

 Any way your collective thoughts, experiences appreciated.

 Tom Driscoll

 

 

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