If an owner of a LLC purchases a car and wants to count off the car expense on taxes, do you have to record the purchase price of the car. The company is paying the monthly payment but did not invest in the initial purchase. My question comes from posting the car payment. You have principal and interest. If there is no asset how do you post the principal? Thank you so much.:)

They are making monthly payments on this car yet they do not own/posses it? I don't understand what you mean in your question.

The owner of the company bought the car personally but instead of mileage for tax returns he wants to count off actual expense ( car payment, gas, taxes, etc). So the company is making the car payment.

I will deter to the AtlantaTax Expert, but I think you can do all,