Enterprise vehicle: what tax benefit?
You are a company manager, company manager or President of SAS, and you think about the possibility of buying a vehicle on behalf of the company for your travels. However, know that the taxation of business vehicles is quite penalizing. So much so that it is sometimes more advantageous to use your personal car bookkeeping services san mateo ca by reimbursing mileage allowances rather than buying a professional vehicle.
Where to buy a company car?
On this point, not really restriction. It is possible to acquire a professional vehicle from an individual (used purchase) from a car dealer (new or used purchase. The option is yours but be acquainted with that if you want to benefit from an overall offer of support for the administrative part and for the financing of your company car, you have better interest to opt for a new vehicle, and go through a dealer. To finance the purchase, one of two things: either the leader of the company is responsible for acquiring the vehicle on a personal basis and is reimbursed by the company for business travel expenses, or it makes buy the by the company and pays benefits to bookkeeping services san mateo ca in kind (subject to social security contributions and the payment of income tax) for personal use.
Depreciation of a company car
A company that acquires a professional car can, thanks to it, reduce its taxable result. Indeed, the purchase of a company car is depreciable over 5 years. Under certain conditions. For example, passenger cars (as opposed to utilities) can only be written off within the limit of € 18,300, reduced to € 9,900 if the vehicle is considered polluting.
The case of individual enterprises (self or micro-entrepreneur)
Can you buy a professional car if you are a sole proprietorship? Nothing forbids it. If you are a liberal profession or are a trader, craftsman or auto-entrepreneur and need a vehicle for the exercise of your activity, the car is considered a professional tool. You can then use it for your private and personal trips. In this box, we are discussion about mixed use, which allows you to deduct vehicle purchase costs, gas costs and certain maintenance costs. Financing question, the professional is free to register his vehicle in his private or professional assets (recorded in the assets of the balance sheet of the company). If he opts for the registration of the vehicle in the professional asset : the owner can claim the deduction of depreciation, interest on loans, repair and maintenance expenses in proportion to his professional use.
- Published On : 3 years ago on November 22, 2019
- Author By : Anya
- Last Updated : November 28, 2019 @ 6:36 am
- In The Categories Of : Finance