View Full Version : Accounting for vehicle purchase
AnitaE
Oct 3, 2009, 09:26 PM
I am a realtor who has established an LLC. I purchased a vehicle in 2008, 90% used for realty activities. The car was purchased in my name, however, the down payment and all payments are made from LLC cash account. How do I account for purchase and subsequent payments.
Would it be booked as an asset or as a lease on company books? How should the entries be?
morgaine300
Oct 7, 2009, 12:41 AM
Are you actually leasing this vehicle, or are you just calling it that but really purchased it outright and making payments on a loan?
AnitaE
Oct 7, 2009, 03:24 PM
No, not leasing. I personally originated a car loan but vehicle used for realty purposes mostly. While I did take out a personal loan, the down pmt and maybe 6 payments made from business cash account, I paid the loan off personally when I refinanced my home.
What is the best way to to account for this? Do I have to record car as fixed asset and depreciate (and pay personal property tax) if so, over how long a period or can I just immediately expense as lease expense. Thank you