My wife's GX460 was totaled last weekend. She's generally fine other than some bruising, frustrated that the GX she liked is gone.

We're looking to buy a new (or used/new-to-us) vehicle and considering having her business purchase it to save on taxes.

If we go that route, what do I need to know about insurance? I've heard/read that it would require a commercial policy that is significantly greater than a regular personal policy.

Anyone have more information?

Consider depreciation recapture when that vehicle is disposed, potential liability if she gets into another accident, and personal use issues.

If she doesn't use the vehicle solely for business use, I wouldn't put it in the company.

I am not your accountant.

LPHA said:

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Consider depreciation recapture when that vehicle is disposed, potential liability if she gets into another accident, and personal use issues.

If she doesn't use the vehicle solely for business use, I wouldn't put it in the company.

I am not your accountant.

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She does do some travel for business... but no, most of the mileage will be personal.

In that case, I'd probably keep it as a personal vehicle and use some sort of mileage tracker like MileIQ for the mileage deduction.

LPHA said:

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In that case, I'd probably keep it as a personal vehicle and use some sort of mileage tracker like MileIQ for the mileage deduction.

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This.

We have some vehicles in our fleet that are primarily used for business only, and we go the 179 route for those. But we do use mileIQ to track business miles so we can show that the vehicle is primarily used for business purposes. All of this vehicles expenses are paid out of company coffers.

Some that get mixed, aka half personal half business 94 any percentage, we use mileIQ for actual business miles and take the mileage deduction. Fuel, repair, and Maintenance on these is out of my pocket and we just take the mileage.

I'm not saying what I'm doing is right or wrong. This is just how we do it.

I'm not an accountant.

I bet your CPA likes you. Or at the very least, doesn't dislike you because of this.