991 GT3 leasing?
#91
Awesome spreadsheet, thanks.
Anyone knows residuals on 12 and 24 mo lease?
I only want the car for a year and I'm thinking doing a one-time payment on a 12/24 mo lease, then buy the car and sell to a private party. Wondering if that makes more sense than a 36mo lease one-time payment in my case.
Thanks
Anyone knows residuals on 12 and 24 mo lease?
I only want the car for a year and I'm thinking doing a one-time payment on a 12/24 mo lease, then buy the car and sell to a private party. Wondering if that makes more sense than a 36mo lease one-time payment in my case.
Thanks
#92
No, The One Pay is $140,740.40. $29,997 will be the purchase price at the end of the 24 month lease term.
#93
Yes, this was done for tax purposes. You can amortize the 2 year lease to the business and at the end of the lease term you can payoff or finance the $29,997. Nothing shady about this lease, it's thru Porsche Finance and I wanted the best terms available. Porsche offers this program, but you need to ask for it.
#94
Thanks, I guess that makes sense in your case for tax reasons: you actually wanted to maximize the one-pay. In my case I want to minimize one-pay because I only want to hold on to the car for 6-12 months. Do you remember if the salesman presented you with the "best" residual? Is it around 60%?
#95
Interesting. Why is the artificial residual so low? This must be architected for such up front lease payoff options for business write-off purposes. My "shady" comment was meant in terms of using an incorrect residual to maximize tax benefits. But I understand Porsche standardized those, hence the oddity here in how a 2014 GT3 could be on the books as being worth $30k in 2 years...
#96
The $29k residual doesn't make any sense unless you paid capital cost reduction under the standard residual -- I wasn't even aware one could do that (or why you would). I'm curious how many miles did you choose on the lease?
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
#97
The $29k residual doesn't make any sense unless you paid capital cost reduction under the standard residual -- I wasn't even aware one could do that (or why you would). I'm curious how many miles did you choose on the lease?
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
Porsche offers this lease, but you have to ask for it.
#98
The $29k residual doesn't make any sense unless you paid capital cost reduction under the standard residual -- I wasn't even aware one could do that (or why you would). I'm curious how many miles did you choose on the lease?
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
Finally, Porsche's residuals and money factors on this car sucks *****. I'm normally a big fan of leasing but not this time around.
Tax Year Amount
1st Tax Year $11,160
2nd Tax Year $5,100
3rd Tax Year $3,050
Each Succeeding Year $1,875
This what you write off each year no matter if the car costs $15,000 or $150,000. If you lease you deduct the lease payment that you pay in the year less an amount from what the IRS calls a lease inclusion table
Value of Vehicle Year of Lease
100,000 110,000 52 115 170 203 235
110,000 120,000 58 127 189 227 262
As you can see the amount for a $100,000 FMV vehicle lease you would not be able to deduct $52, 115, 170, 203, 235 over 5 years of a lease.
So not sure what someone is referring to saying a purchase and lease is handled the same way. As you can see its two different things.
There is a capital lease we sometimes use on our commercial company trucks where ownership at the end of the lease reverts to you for a bargain purchase of usually $1. If you have a capital lease you treat the lease as a purchase. The real capital lease is usually with equipment and commercial vehicles.
#99
Keep in mind that your annual lease payment deduction is reduced for personal miles (including commuting from home to work).
Interesting line of work that one can drive a GT3 for business.
I'm still surprised at the low $29k residual at the end of 24 months, even with the 15,000 annual miles. If you exercise the buyout at maturity and resell the vehicle, the gain will come back to take medium bite out of your tax strategy. The time value of money isn't much, at least currently.
Finally, the costs of leasing this car are not insignificant. The money factor on a 24 month lease is not competitive on this car, which approximate $20k in finance costs, acquisition and termination fees.
Interesting line of work that one can drive a GT3 for business.
I'm still surprised at the low $29k residual at the end of 24 months, even with the 15,000 annual miles. If you exercise the buyout at maturity and resell the vehicle, the gain will come back to take medium bite out of your tax strategy. The time value of money isn't much, at least currently.
Finally, the costs of leasing this car are not insignificant. The money factor on a 24 month lease is not competitive on this car, which approximate $20k in finance costs, acquisition and termination fees.
#100
With purchase you have limited deduction against earned income. With the lease you can write off any amount that is deemed reasonable up to the entire lease payment. If in 30% tax bracket you are saving substantial amount.
Yes cost is higher for finance so this would be on a per person bases.
Yes cost is higher for finance so this would be on a per person bases.
#101
Racer
#102
Rennlist Member
There are ways around this. You can state a different vehicle is used for commuting, but in general, writing off 100% of the vehicle cost will result in an IRS red flag, especially on an expensive car.
#103
Spent a lot of time reading most of this thread. I'm a CPA with auto dealer clients, leasing companies, etc. I see a lot of accurate info here, but also some comments from folks that are confused. This is a complex area.
Bottom line, if you have business use (legit), you must lease to get an bang for the buck, so to speak. Now proving up a high % of business use is going to take some good facts and good documentation. But it is possible.
Bottom line, if you have business use (legit), you must lease to get an bang for the buck, so to speak. Now proving up a high % of business use is going to take some good facts and good documentation. But it is possible.