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    AnitaE's Avatar
    AnitaE Posts: 3, Reputation: 1
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    #1

    Oct 3, 2009, 09:26 PM
    Accounting for vehicle purchase
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    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's Avatar
    AnitaE Posts: 3, Reputation: 1
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    #3

    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
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