?? ?? ?? Business Use of Car ?? ?? ??...

My point about buying a car in your business name is you don’t get anything extra for having it in your business name. This is just a way for car sales people to sell cars.

I know a lot of business will spend the money just because they hear they can get it into their business name.

If you use a car for business ( purchase in your business name or not) you get a tax deduction. YOU DON'T GET MORE if its in your business name, you are just creating auditing problems for yourself.

The only way to get more is to use the car more for business than personal. How you prove this, is mileage ONLY!

1) You will still need to keep track of mileage

2) Cars in businesses that don’t need a separate car is harder to prove for business purposes. For example, a construction company may have several pick up trucks for business and regular car for person. Does that make sense...yes.

...An attorney may have a BMW in business name and Honda in personal. Do you need a different car to drive to your office?

It’s just common sense people! The IRS ask common sense questions in an audit and it’s the business owners that are failing these simple common sense questions, because they are trying to justify what foolish things they have heard!

3) You still need documentation, regardless. This is why car use is such an easy audit area because people don’t keep documentations. They buy the car in Business name and that’s just it! No records to show business use.

People who buy luxury car or lease luxury cars are just fooling themselves as well. There is a thing call Luxury car limits that basically reduce your deduction.

So my dear business owners - know what deductions actually benefit you and stop wasting your money foolishly. If you need a car, get a car...think more about how much cash you're spending. It’s better to have one car and have your business pays for most of it than maintaining two cars...that’s the purpose of tax savings...You should save money. Not create additional ways to spend money.

Ronica Brown is a certified public accountant (CPA) and business owner who is driven by her love for entrepreneurship. Ronica's financial background and experience in business allow her to easily relate to her clients and provide them with the support they need to grow their business. She helps her clients to operate more efficiently so that they can maximize their profits, reduce tax liability, increase cash flow, and save time in their business. Visit Blog