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Originally Posted by Sliver
Not an accountant, but this is my understanding.
I have a main corporation that pays my holding company that, in turn, pays me personally.
Everything is taxed as it moves down the line.
So say I make $100 in the main corp. Then to get it out, I have to pay my holding company, where say I'm taxed like 15% or something. Then I have to get it from the holding corp to me personally, where I pay, say, 22%. So that $100 goes to $85, then down to $66.30 before I can spend it personally. Now I'm buying a car with 35% less buying power to do it personally versus through the corp.
Same goes for registration, insurance, maintenance, winter tires, etc. It's a big savings to do it through the corp.
The other thing is you don't want your main corp really turning a profit (or much of one). You have to get the money out of the corp before year end, or that is taxed, too, in addition to your holding company and then you personally.
Can my company justify a vehicle lease or is it a grey area? This wouldn't be grey. I have offsite meetings pretty much daily and would use the company vehicle. It's not one of those gaming-the-systems things. It's a totally legitimate-by-any-measure write-off that would raise no red flags.
Another bonus for me is I would sell my CLS. That I do own personally and outright, so then it frees up the cash I have in that for other things and I no longer pay for insurance, maintenance, etc. with after-tax dollars on that vehicle.
Anyway, I probably fataed up some of how that works and maybe Locke or somebody will chime in, but that's the logic I'm going off of here.
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I'm pretty sure if Locke reads this he won't chime in because he'll be too busy having an aneurysm.
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What would be the best is a B9 S4 Avant manual. Now that's a year-round fun car.
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Unfortunately, such a beast is wholly mythical.
... Although even if it weren't I'd probably still want to stick with the B7 generation; the naturally aspirated V8 is one of the best sounding cars I've ever been in and was a big reason why I wanted it despite it being a bit of a time bomb, and continue to want another one of the non-time-bomb, R8-equivalent variety.