Tax Services by Accounting CPA and Accountant in Phoenix, AZ

Leasing could be your best tax savings instead of buying!

 

By Jeffrey Brooks, CPA, CFP, MBA for JBrooks Wealth Advisors, PC, a Professional CPA and CFP Firm . jeff@jbrookswa.com  602-292-2009  Please consult with your professional tax CPA regarding your specific circumstances!

 

I am fortunate that I enjoy my work helping clients reduce their taxes and avoid costly additional taxes and fees and aggravation from IRS or Arizona state tax audits!

 

I have learned over 40 years of helping business owners in Phoenix, Scottsdale, Paradise Valley, Tempe, Glendale, Chandler and Mesa that there isn’t an easy answer to whether it is best to lease or buy a vehicle.

 

I will use an actual example with change in name of client to protect the confidentiality of their identity.

 

Sally Jones is a Phoenix, Arizona dentist who is a Pediatric dentist.  Sally was ready to buy a slightly used off lease vehicle for about $41,000.   Sally’s practice files on the cash basis and Sally has to “beg, steal and borrow” to get funds at year end to pay off payables, pay additional bonus payroll and to prepay expenses to reduce her personal income taxes.

 

If Sally buys the vehicle for $41,000 plus sales tax, the amount of deduction will be minimal because the vehicle weights under 6000 pounds.

 

A lease with a fair market value buyout is a perfect fit for Sally because:

 

  1. She doesn’t drive her vehicles more than 15,000 miles per year.
  2. She likes a newer vehicle every two years.
  3. Sally wise accepted my advice regarding Office Admin Expense tax benefits which increases the business percentage of the monthly lease payment.
  4. She let me review the lease. The first lease was a purchase lease which would have resulted in negative tax ramifications.
  5. Sally follows my advice and drive to another state for dental tax seminars and therefore increases her business percentage.
  6. Sally follows most of my advice including having her practice as the lessee on the lease.

Jeffrey Brooks, CPA, CFP, MBA is a regular contributor to professional publications specializing in taxation and has taught tax classes to other CPAs.

 

Jeff’s mission and hobby is to help clients save more of the money they make. You can call him at 602-292-2009

 

 

If you enjoyed this article, please consider sharing it!
Icon Icon Icon

Leave Your Response

You must be logged in to post a comment.

RSS FEED

Search

No Obligation FREE Evaluation: Guaranteed to Reduce Your Taxes

602-292-2009

Name:*

Email:*

Company:

Comments:

Security Code:
captcha
Please enter the code shown above:

About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

Get In Touch

JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com