Quote:
Originally Posted by John 070
Again, I asked someone to cut the bull, we all know purchases are very straightforward, leases have a lot of built-in fluff that costs more money.
Assuming you have no cash flow problem, why lease?
Answer was IRS scrutiny.
Do you have a transit authority leasing buses? Of course not, they buy them, going into it with a 12 yr. life expectancy and drive them 20. Because they are operating a business to make profits, not looking for status.
If you look at a co. like Greyhound, not only did they not buy new buses, they rebuilt old ones.
IRS scrutiny > the better option
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There is very little IRS scrutiny when it comes to a small business with 1 or 2 vehicles. If you have a fleet of 14 exotic cars owned by a plumbing company with 1 owner/officer; IRS will be interested.
As mentioned, you are correct with a lease being simple and staring forward. But the IRS will still be interested if a 1 owner/officer plumbing company is leasing 14 exotic cars. 14 cargo vans may even garner interest from IRS. Only because it would typically make more sense for a plumbing company to purchase those vehicles.
The whole lease VS buy thing is totally dependent on your situation. When we leased the 2006 E46 M3 i knew that i would likely be getting an E92 in 2009 or 2010. I didn't want the hassle of selling it or trading it so we leased it. I knew i would keep the E92 M3 for 5-6 years so we purchased it.