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Archive of posts published in the category: considerations
Apr
13

5 Business Vehicle Considerations – Entrepreneur.com

Before you start using an automobile for your business, address these financial considerations first.


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When using a vehicle for business purposes, there are a variety of issues to consider: Should you use a personal or business vehicle? Should you have the company reimburse you for business-related expenses? How should you deduct your mileage?

As with any aspect of your business and personal lives, it’s important to keep vehicles and the related expenses separate. The type of vehicle arrangement that will be most financially favorable depends on your particular situation. Here are five things to consider:

1. The driver–Who will be driving the vehicle for business? Will it be the owners, the employees or both? You obviously have more control over your driving behavior than that of your employees. If your employees have a poor record, this could affect your insurance rates and overall liability exposure and costs.

Insurance rates automatically increase when you add coverage for your employees. It will also fluctuate depending on whether employees drive their own cars for business purposes or drive company vehicles. Your agent needs to understand the details of your situation so he or she can make the best recommendation and ensure you’re covered appropriately.

You assume additional liability when allowing employees to drive for your business. Not only do you need to consider adequate insurance coverage, but also the liability you are taking on should anything happen to your employee or a third party using a vehicle. Accidents are an unfortunate fact of life, and you need to prepare for the “what-ifs” to protect your business.

2. Taxable business expenses–What is considered a legitimate business expense? If you have a business vehicle, you shouldn’t drive it for personal use. Otherwise, you may need to claim some of the vehicle’s value as 1099 income.

If you drive a personal vehicle for business use, you need to track the mileage that is business related. The government allows a monetary value per mile that is considered “a reasonable business expense” for tax purposes. There are two options for deducting automobile expenses: the per diem rate or the actual expenses you incur. For most, the per diem is the most favorable option. Talk with your personal accountant to find out what is appropriate for you. Visit www.irs.gov for the current per mile allowable rate.

3. Financial statements–Financial statements will show only the assets owned by the business. That means personal vehicles are not listed as assets. If the vehicles are business assets, their cost, accumulated depreciation and any related liability will appear on the balance sheet.

4. Property taxes–Property taxes for the vehicles are often different for personal and business considerations. The titling of the vehicle

Jun
17

eight Considerations When Buying A New Vehicle

Buying a new vehicle generally is a aggravating experience that may leave most people questioning in the event that they paid an excessive amount of for his or her automotive. There was every little thing from tremendous sound systems, lighting, shag carpeting, wood trim, Captain’s chairs and beds to spoilers, mag wheels, customized horns and CB radios. Another question may end in the use of dealership plates when a supplier permits a purchaser to drive off the lot with a vehicle that is nonetheless technically registered to the dealer whereas it undertakes to course of a financing application.

The driver of a motor vehicle is usually required to carry a sound driver’s license whereas driving on public lands, whereas the pilot of an plane will need to have a license always, regardless of the place in the jurisdiction the plane is flying.

I didn’t go along with Eco enhance as a result of it wasn’t accessible within the kinds of vehicles I used to be contemplating at the time. Advantages: these vehicles are well maintained and pushed for only one yr. Obtain essential types and make use of e-services, such as de-registration of vehicles.

Automobile drivers fantasize about being behind the wheel of a 2017 Chevrolet Camaro, but the majority don’t buy the luxury sports activities vehicles. You may pair up to 5 gadgets at one time, but you’ll be able to only join to one gadget at a time. As a substitute, the safer course of action is to inform the motive force that they no longer have permission to drive the vehicle and that you will come retrieve it your self.

This allows us to immediately see the difference in energy usage between electric and gasoline powered automobiles. Easy coloring pages are a good selection for journey actions – you’re on the street and you’ll coloration cars and trucks you see. This normally comes in the form of a site visitors gentle gadget or audio buzzer that indicates to a driver after they have carried out a harsh maneuver.

The whole Massive Brother impact makes me a more uptight driver than if I haven’t got the Drive Wise gadget in place. You can even check the guide value for commerce in vehicles at websites comparable to Kelly Blue E book and NADA Guides The vendor will use related pricing info to determine the commerce in value of your vehicle.…