How Tax Write Off Works

Universal Information

INCOME, LOAN AMOUNT & PERIOD AND VEHICLE COST

MONTHLY INCOME LOAN AMOUNT LOAN PERIOD VEHICLE COST

VEHICLE EXPENSES RELATED TO MAINTENANCE

MAINTENANCE GAS CAR WASH MISCELLANEOUS
Additional Information

TAX RATE, INT. RATE AND PAYMENT INFO
PERSONAL

TAX RATE
TAX PAYMENT ON INCOME
PERSONAL INT. RATE
LOAN PAYMENT PER MONTH
AVG. LOAN PAYMENT TO PRINCIPAL
AVG. INT. PAYMENT
 

TAX RATE, INT. RATE, PAYMENT INFO & DEPRECIATION
COMMERCIAL

TAX RATE
TYPICAL TAX PAYMENT ON INCOME
COMMERCIAL INT. RATE
LOAN PAYMENT PER MONTH
AVG. LOAN PAYMENT TO PRINCIPAL
AVG. INT. PAYMENT
DEPRECIATION COST ( 15% )
 
Resale of Vehicle
NON-BUSINESS PURCHASE
Jan - Dec

MONTHLY
INCOME

MONTHLY LOAN
PAYMENT

COSTS
PER
MONTH

TAXES OWED
PER MONTH

TAXES SAVED
AVERAGED
OVER 60 MONTHS

RESALE VALUE
AVERAGED
OVER 60 MONTHS

EFFECTIVE
MONTHLY COST
OF VEHICLE

  
 
ACTUAL COST OF
VEHICLE 		TAX SAVINGS
OVER 5 YEARS 		EFFECTIVE COST
OF VEHICLE
BUSINESS PURCHASE
Jan - Dec

MONTHLY
INCOME

MONTHLY LOAN
PAYMENT

COSTS
PER
MONTH

TAXES OWED
PER MONTH

TAXES SAVED
AVERAGED
OVER 60 MONTHS

EFFECTIVE
MONTHLY
PAYMENT

RESALE VALUE
AVERAGED
OVER 60 MONTHS

EFFECTIVE
MONTHLY COST
OF VEHICLE
ACTUAL COST OF
VEHICLE 		TAX SAVINGS
OVER 5 YEARS 		EFFECTIVE COST
OF VEHICLE

READ THE FOLLOWING

For businessperson, actual monthly payment is actual loan payments multiplied by 60 minus tax savings, averaged over 60 months, minus resale value, averaged over 60 months.

Actual Monthly Payment 60 = $2,027.64 60 = $121,658
Tax savings 60 = 1,436.91*

11,671.36

Observations of relationships: Regular consumer will pay about 5% more for the same vehicle as business person.

Relationship between taxes and expenditure is 4 to 1.

Relationship between actual cost of vehicle and texes for business person and actual for regular is the tax savings.

Include a place to put a different interest rate for business person.

If the business person dis not buy vehicle, his take home would been 5,000 minus %0 of ($15,000) = 1,250.00

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