To Buy or Not to Buy, Leasing may be the Question!

Should I buy that new car?  Should I lease it?  What are the implications of each?  How do I know what's best???

Good Questions!

The Buy vs. Lease Discussion is really more about how you use the car than the tax write-offs!  Take for Example Use and Mileage of the Vehicle:
- If you are a Realtor, you may drive 35,000 miles each year (completely over-running your allowed mileage on a lease) and have heavy penalties when you turn in the car. 
- On the other hand, you may be in construction, someone who doesn't drive that often with the car, but needs a new car every 3 years due to the heavy strain of equipment on the vehicle.

However, there are always tax issues to note as well:
- If you buy the car, depending on the model, you may be able to write off up to $25,000 of the purchase price in the first year (that can be of great help if you had a very prosperous year!)
- If you lease the car the Entire payment is deductible, versus if you buy, only any interest you may pay is deductible each year (beyond depreciation)

It can be a tough decision, so make sure you talk to your CPA if you are looking at a new vehicle!