The Rolex Forums   The Rolex Watch

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX

Sunday 15 December 2024 @ 4:53:50 pm

Go Back   Rolex Forums - Rolex Forum > General Topics > Open Discussion Forum

Reply
 
Thread Tools Display Modes
Old 13 September 2017, 10:26 PM   #1
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
My Dream Situation

I just had a long talk with my accountant. This gentleman has been with my company for well over a decade.

There are things that I do not like about him. However, he is squeaky clean and I feel very confident with him. I know that I leave money on the table, but I prefer to not take any chances.

I have had other accountants tell me I could play with some loopholes a bit more, and I always decline. I like to play it safe with taxes.

Now that this is out of the way.

As some may remember, I recently leased two F150's and branded them as a way of advertising and transporting staff and tools and materials. I knew that leasing was good for tax purposes, but I don't have much experience with leasing and I did not realize that this is basically a complete write off as it is a work tool.

Further to that, I drive one of them pretty regularly.

However, I also own my X5 outright. So my accountant tells me, knowing that I like to flip cars, that there might actually be a business case to trade in my X5 and lease a car for me.

I never leased before because I put so many miles on my vehicles due to work. However, now that I split my time with the F150 and my own vehicle, I can get away with 15,000 a year for a lease.

And apparently because I use it so much for work, that too is a nice write off, and becomes better when I lease a vehicle.

So I can literally trade in my X5, get a nice big check and write off the cost of a new vehicle lease as long as it is over a certain weight.

Now, I like my X5 a lot. But I am not sure I am going to pass up this opportunity.

I do realize that I lose based on the hit from the X5, but I make up for that to some degree by having the extra cash to work with. And now I have a payment whereas before I did not. But much of the payment is a write off and this is just one payment amongst many.

This is going to be fun. A lot of options to play with. Clearly, has to be an SUV. Not as interested in the fastest SUV I can get, as I was in the past. I am more interested in snow capable. I do want power, but I think armageddon is on the way, and I want to be prepared.

I will update the thread later with some thoughts, but again, this is going to be fun. And I felt compelled to share.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 13 September 2017, 10:44 PM   #2
520Matt
"TRF" Member
 
520Matt's Avatar
 
Join Date: Jan 2010
Real Name: Matt
Location: Tucson, AZ
Watch: SD, LV,GMT II Pep
Posts: 2,782
Always fun to shop for a new car ... just realized I am making this statement to a car lover/flipper realize that if you lease you are kind of " stuck" with the car for the lease term ..... although I guess you can always get out of a lease too. Enjoy the search
520Matt is offline   Reply With Quote
Old 13 September 2017, 11:13 PM   #3
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Quote:
Originally Posted by 520Matt View Post
Always fun to shop for a new car ... just realized I am making this statement to a car lover/flipper realize that if you lease you are kind of " stuck" with the car for the lease term ..... although I guess you can always get out of a lease too. Enjoy the search
Ha. Yeah. I think I somehow manifested this by wishful thinking.

And yeah, I was warned to ensure I get something I really like. I was told that getting out of the lease will not be ideal and that I'll need to commit to 39 months, which is an eternity.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 13 September 2017, 11:15 PM   #4
rr-nyc
Liar & Ratbag
 
Join Date: Nov 2009
Real Name: Renato
Location: NYC / Miami Beach
Watch: Rolex Daytona
Posts: 5,344
I'm not an accountant but I believe it allows for any vehicle over 6000lbs. This came about from too many sports cars being written off. I may be inaccurate in the details but instead of leasing, you can also depreciate a much larger chunk of the truck if you choose to purchase.
rr-nyc is offline   Reply With Quote
Old 14 September 2017, 12:07 AM   #5
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Quote:
Originally Posted by rr-nyc View Post
I'm not an accountant but I believe it allows for any vehicle over 6000lbs. This came about from too many sports cars being written off. I may be inaccurate in the details but instead of leasing, you can also depreciate a much larger chunk of the truck if you choose to purchase.
You are correct on both accounts. Anything over 6k lbs.

And I can take depreciation from the vehicle that I purchase. And I'm no expert, but I believe the tax benefits of a lease are far superior.

Edit: adding that I think my accountant is trying to get me into a lease as it's cleaner for him, and he wants to lock me down into something I can't flip.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 04:32 AM   #6
Etschell
"TRF" Member
 
Etschell's Avatar
 
Join Date: Dec 2013
Location: FL
Watch: platinum sub
Posts: 15,884
Quote:
Originally Posted by rr-nyc View Post
I'm not an accountant but I believe it allows for any vehicle over 6000lbs. This came about from too many sports cars being written off. I may be inaccurate in the details but instead of leasing, you can also depreciate a much larger chunk of the truck if you choose to purchase.
Thats right in terms of bonus depreciation. But you can damn well sure expense a ferrari, private jet or yacht if you truly use it for business purposes. Maybe not 100 percent of course but some percentage.
__________________
If you wind it, they will run.

25 or 6 to 4.
Etschell is offline   Reply With Quote
Old 16 September 2017, 10:10 AM   #7
Laszlo
2024 SubLV41 Pledge Member
 
Laszlo's Avatar
 
Join Date: Nov 2007
Location: San Francisco, CA
Watch: Date & No Date
Posts: 10,868
Quote:
Originally Posted by rr-nyc View Post
I'm not an accountant but I believe it allows for any vehicle over 6000lbs. This came about from too many sports cars being written off. I may be inaccurate in the details but instead of leasing, you can also depreciate a much larger chunk of the truck if you choose to purchase.
6,000 lbs. is correct. That number played a role for Land Rover (lease and sales success here in the US for decades) when they truly were the most unreliable vehicles on the road and any other car maker would have simply pulled out or simply gone out of business. That's obviously not the case today, Land Rovers are very reliable. My mum's were so insanely heavy they were classified as 'trucks' from by DMV.
__________________
"You might as well question why we breathe. If we stop breathing, we'll die. If we stop fighting our enemies, the world will die."

Paul Henreid as Victor Laszlo in Casablanca
Laszlo is offline   Reply With Quote
Old 13 September 2017, 11:28 PM   #8
mjclark32
"TRF" Member
 
mjclark32's Avatar
 
Join Date: Mar 2010
Real Name: MJC
Location: PHL USA
Watch: IWC, Rolex, AP
Posts: 29,232
Nice, new cars are always fun, especially when you're picking! I've been looking into picking up a Tahoe, if you want Armageddon ready take a look at the Z71.
What's the shortest term lease there is? Can't you do yearly?
__________________
mjclark32 is offline   Reply With Quote
Old 13 September 2017, 11:36 PM   #9
michaelodonnell123
Banned
 
Join Date: Feb 2017
Real Name: Michael
Location: NJ
Watch: Panerai 112
Posts: 1,172
" I am more interested in snow capable"...Subaru. Period.
michaelodonnell123 is offline   Reply With Quote
Old 14 September 2017, 12:10 AM   #10
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Thanks for the suggestions so far. Being that I'm going to be stuck if I actually do this, and that I'm a bit of a car nut, I'm likely going to find a mix of luxury, power and capability.

So far:

Wrangler Rubicon
Full size Range Rover
Mercedes GLS 550
Chevy Tahoe
Yukon Denali

So far. So we shall see. I'm not in a rush, so I'm going to try and enjoy the process
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 12:52 AM   #11
GB-man
2024 SubLV41 Pledge Member
 
GB-man's Avatar
 
Join Date: Nov 2012
Location: USA
Watch: addiction issues
Posts: 37,358
If a full size Range Rover is in the cards that's the ticket no doubt about it.

Otherwise the new discovery diesel is really quite nice and gets killer range on the tank which is a huge plus imho.

I assume the raptor takes a back seat given the f150 is already in the stable?

Often overlooked is the Lexus LX570 imho. Go to the dealer and sit inside before you write it off. Very posh interior and super capable for Armageddon

Edit: another idea which I think???is legal.

I drive a 4Runner trd pro. I would only recommend one as a comp to a Jeep Wrangler as they drive like crap compared to all the other options you listed.

You could lease one. Write off the payments. Buy it at lease end for the residual and likely have 10k in positive equity. Look up the resale.
__________________
GB-man is offline   Reply With Quote
Old 14 September 2017, 01:02 AM   #12
Watchflair
2024 SubLV41 Pledge Member
 
Watchflair's Avatar
 
Join Date: May 2012
Real Name: Jim
Location: Westchester NY
Watch: Love em all
Posts: 5,920
Quote:
Originally Posted by superdog View Post
Thanks for the suggestions so far. Being that I'm going to be stuck if I actually do this, and that I'm a bit of a car nut, I'm likely going to find a mix of luxury, power and capability.

So far:

Wrangler Rubicon
Full size Range Rover
Mercedes GLS 550
Chevy Tahoe
Yukon Denali

So far. So we shall see. I'm not in a rush, so I'm going to try and enjoy the process

Seth - if you are looking at Tahoe or Denali go for an Escalade - lease is very aggressive. If you want numbers or info PM me and I'll take care of you on it.
__________________
Remember what matters. Value everyday
Watchflair is offline   Reply With Quote
Old 9 January 2018, 10:42 AM   #13
mjclark32
"TRF" Member
 
mjclark32's Avatar
 
Join Date: Mar 2010
Real Name: MJC
Location: PHL USA
Watch: IWC, Rolex, AP
Posts: 29,232
Quote:
Originally Posted by superdog View Post
Thanks for the suggestions so far. Being that I'm going to be stuck if I actually do this, and that I'm a bit of a car nut, I'm likely going to find a mix of luxury, power and capability.

So far:

Wrangler Rubicon
Full size Range Rover
Mercedes GLS 550
Chevy Tahoe
Yukon Denali

So far. So we shall see. I'm not in a rush, so I'm going to try and enjoy the process


Sorry to bump an old thread with a semi irrelevant post, but I know how much you love car buying and wanted to let you know/join in.
Just bought this today. I have auction access through work and called my Chevy dealer to buy it for me. Paperwork is in the mail since I’m in Florida at the moment, but will pick up next week. Pretty excited for it. I’ve been leasing for the past five years so will be nice not to have a monthly payment.


__________________
mjclark32 is offline   Reply With Quote
Old 9 January 2018, 11:16 AM   #14
DJ TT 2002
2024 Pledge Member
 
DJ TT 2002's Avatar
 
Join Date: May 2013
Location: Hollywood 1950
Posts: 4,103
Quote:
Originally Posted by mjclark32 View Post
Sorry to bump an old thread with a semi irrelevant post, but I know how much you love car buying and wanted to let you know/join in.
Just bought this today. I have auction access through work and called my Chevy dealer to buy it for me. Paperwork is in the mail since I’m in Florida at the moment, but will pick up next week. Pretty excited for it. I’ve been leasing for the past five years so will be nice not to have a monthly payment.






The perfect choice for your newly expanded family!
Strollers and Pack n Plays and Diaperbags all take up lots of room.
Tahoe for #1 baby then moved to Suburban for #2 & 3 babies
DJ TT 2002 is offline   Reply With Quote
Old 9 January 2018, 11:19 AM   #15
mjclark32
"TRF" Member
 
mjclark32's Avatar
 
Join Date: Mar 2010
Real Name: MJC
Location: PHL USA
Watch: IWC, Rolex, AP
Posts: 29,232
Quote:
Originally Posted by DJ TT 2002 View Post
The perfect choice for your newly expanded family!
Strollers and Pack n Plays and Diaperbags all take up lots of room.
Tahoe for #1 baby then moved to Suburban for #2 & 3 babies
Exactly!
Though, I think we’ll cap it after two time will tell
__________________
mjclark32 is offline   Reply With Quote
Old 14 September 2017, 01:31 AM   #16
Abdullah71601
Banned
 
Join Date: Aug 2014
Location: Calumet Harbor
Watch: ing da Bears
Posts: 13,568
A MB G65 is 6065 pounds.

May as well have style and performance.
Abdullah71601 is offline   Reply With Quote
Old 14 September 2017, 08:07 AM   #17
texasmade
"TRF" Member
 
texasmade's Avatar
 
Join Date: Feb 2017
Real Name: Robert
Location: Lone Star State
Watch: AP RO 15400, FOIS
Posts: 2,384
Quote:
Originally Posted by Abdullah71601 View Post
A MB G65 is 6065 pounds.

May as well have style and performance.
I was going to suggest this, the G550 4x4^2,or go really ridiculous and get the G63 AMG 6x6.
texasmade is offline   Reply With Quote
Old 14 September 2017, 04:51 AM   #18
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Thanks for the suggestions guys.

So far, the GLS 550 is in the lead. Nice power, a lot of car for the money in comparison to the RR and it has an off-road package.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 06:59 AM   #19
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Whelp.

GLS 550 & full size Range are basically the same money.

So it's a toss up.

MB is silver with black package, RR is black on black. Touch call.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 07:17 AM   #20
swils8610
2024 SubLV41 Pledge Member
 
swils8610's Avatar
 
Join Date: Sep 2012
Real Name: shannon
Location: usa
Posts: 9,211
Rover or GLS. You can also do a prepaid lease so you have no payments and usually save a little on the lease factor.


Sent from my iPhone using Tapatalk Pro
swils8610 is offline   Reply With Quote
Old 14 September 2017, 08:04 AM   #21
mfer
"TRF" Member
 
mfer's Avatar
 
Join Date: Mar 2007
Real Name: Mik
Location: USA
Posts: 13,724
BTW, your accountant can't tell you anything illegal or they can lose their license to practice. I'd follow your accountant suggestions.

What X5 you have? The 50 or the D? I'm trying to determine what my next car will be. Much more practical than yours of course? My mechanic is saying to get the X5D.
__________________
member#3242
mfer is offline   Reply With Quote
Old 14 September 2017, 08:39 AM   #22
swils8610
2024 SubLV41 Pledge Member
 
swils8610's Avatar
 
Join Date: Sep 2012
Real Name: shannon
Location: usa
Posts: 9,211
Seth, you can also add miles to the lease upfront. Most leasing companies will do up to 25k per year.


Sent from my iPhone using Tapatalk Pro
swils8610 is offline   Reply With Quote
Old 14 September 2017, 09:25 AM   #23
1st amg
2024 SubLV41 Pledge Member
 
1st amg's Avatar
 
Join Date: Jun 2013
Real Name: nicholas
Location: ottawa canada
Watch: Rolex,AP,Panerai
Posts: 10,414
Seth, this is going to be fun! Being that you are now a Mercedes fan with that gorgeous SL you have, I think the GLS 550 is the one to add. I am speaking from experience, I have one for my wife, in the same color combo you are looking at, Irridium Silver and Black interior. The technology in this think is amazing. The quality as usual is top notch. It is based on a S class platform after all. It is such a solid vehicle, with the space to accomodate seven people comfortably. I am very happy with this latest one, we have been buying the GL series for years, and this one currently is the real deal. I remember, when looking to get into a new seven passenger SUV, I ventured out and looked at the competition...one re confirmed this one, again was the residual on the lease. I think ours was 63%, insanely high, the competition couldnt come close. So for leasing, this was the one.....one other thing, ours has Apple car play and it is so intuitive to use, love it. Good luck
1st amg is offline   Reply With Quote
Old 14 September 2017, 09:27 AM   #24
1st amg
2024 SubLV41 Pledge Member
 
1st amg's Avatar
 
Join Date: Jun 2013
Real Name: nicholas
Location: ottawa canada
Watch: Rolex,AP,Panerai
Posts: 10,414
Here are some pics of the wife's hauler





Sent from my iPhone using Tapatalk
1st amg is offline   Reply With Quote
Old 14 September 2017, 09:56 AM   #25
ejvette
2024 SubLV41 Pledge Member
 
ejvette's Avatar
 
Join Date: Apr 2014
Real Name: Ed
Location: East Hampton NY
Watch: me break clays..
Posts: 7,516
You could get a new X5 I believe its over the 6000 MGW guide line whatever you get it needs to be a large SUV to meet the Weight limitation but you can lease a luxury car there is a minor lease add back at year end (I'm a CPA) I often advise my clients on these matters and I will also tell you I never advise people to incur debt for tax deductions.
__________________
Rolex•Omega•Breitling•Grand Seiko•Tudor

"No one on their death bed ever said I wish I worked more" My Grandma

* Card carrying member of TRF's Global Association of Retro-Grouch-Curmudgeons *
ejvette is offline   Reply With Quote
Old 14 September 2017, 10:15 AM   #26
520Matt
"TRF" Member
 
520Matt's Avatar
 
Join Date: Jan 2010
Real Name: Matt
Location: Tucson, AZ
Watch: SD, LV,GMT II Pep
Posts: 2,782
This is a tough call. Both are baeutiful vehicles.
520Matt is offline   Reply With Quote
Old 14 September 2017, 10:28 AM   #27
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Quote:
Originally Posted by ejvette View Post
You could get a new X5 I believe its over the 6000 MGW guide line whatever you get it needs to be a large SUV to meet the Weight limitation but you can lease a luxury car there is a minor lease add back at year end (I'm a CPA) I often advise my clients on these matters and I will also tell you I never advise people to incur debt for tax deductions.
I knew this would come. And I know that you are right, in principle.

And I probably should not do this. I might not. I like my car a lot. And it's not smart financially. Some value is there, but it's overall not responsible. I get it.

But I continue to have this nagging thought that life is short, and this is fun.

I've got my issues with watches and cars. But mostly, I'm annoyingly conservative and responsible. A little bit of balance in the grand scheme, I'm figuring.

However, I'm looking at near to 45k back in cash, along with a 39 month lease. And the lease costs that are mostly a tax write off.

You are right, I know you are. My CPA also ultimately agrees with you.

At the same time, the math seems to work in my favor. While also violating the cardinal rule you mention.

Tough call.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 10:32 AM   #28
ejvette
2024 SubLV41 Pledge Member
 
ejvette's Avatar
 
Join Date: Apr 2014
Real Name: Ed
Location: East Hampton NY
Watch: me break clays..
Posts: 7,516
Quote:
Originally Posted by superdog View Post
I knew this would come. And I know that you are right, in principle.

And I probably should not do this. I might not. I like my car a lot. And it's not smart financially. Some value is there, but it's overall not responsible. I get it.

But I continue to have this nagging thought that life is short, and this is fun.

I've got my issues with watches and cars. But mostly, I'm annoyingly conservative and responsible. A little bit of balance in the grand scheme, I'm figuring.

However, I'm looking at near to 45k back in cash, along with a 39 month lease. And the lease costs that are mostly a tax write off.

You are right, I know you are. My CPA also ultimately agrees with you.

At the same time, the math seems to work in my favor. While also violating the cardinal rule you mention.

Tough call.
Seth all that aside.... I'm a car guy like you and getting a check in hand and the joy of picking up a new ride supersedes the sensible thing
__________________
Rolex•Omega•Breitling•Grand Seiko•Tudor

"No one on their death bed ever said I wish I worked more" My Grandma

* Card carrying member of TRF's Global Association of Retro-Grouch-Curmudgeons *
ejvette is offline   Reply With Quote
Old 14 September 2017, 10:38 AM   #29
superdog
2024 Pledge Member
 
superdog's Avatar
 
Join Date: Oct 2011
Real Name: Seth
Location: nj
Watch: Omega
Posts: 24,834
Quote:
Originally Posted by ejvette View Post
Seth all that aside.... I'm a car guy like you and getting a check in hand and the joy of picking up a new ride supersedes the sensible thing
Well put buddy. Well put!! Believe you me, it's not the dumbest move I've made.

But it's also not going to effect much in any discernible way. It's also things like this that have always motivated me.
__________________
If happiness is a state of mind, why look anywhere else for it?

IG: gsmotorclub
IG: thesawcollection

(Both mostly just car stuff)
superdog is offline   Reply With Quote
Old 14 September 2017, 10:49 AM   #30
G8RDPM
2024 ROLEX SUBMARINER 41 Pledge Member
 
Join Date: Jan 2011
Location: South Carolina
Posts: 3,252
Seth,I still see you in the RR SVR in the royal blue!
I think it can handle the snow.
G8RDPM is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Takuya Watches

OCWatches

Wrist Aficionado

My Watch LLC

WatchesOff5th

DavidSW Watches


*Banners Of The Month*
This space is provided to horological resources.





Copyright ©2004-2024, The Rolex Forums. All Rights Reserved.

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX

Rolex is a registered trademark of ROLEX USA. The Rolex Forums is not affiliated with ROLEX USA in any way.