Originally Posted by Dutch
Originally Posted by TimberRunner
Deduction for a small business owner means paying for it with pre-tax dollars. So, if they are in the top marginal tax bracket, they are paying 60-65% cost when factoring in taxes.


How do you figure? The top Federal income tax bracket is 37% for 2021, starting at over $600 K AGI. No FICA at that level (unless you are a tax moron), So how do you get to 60%?


Your comment IS a perfect illustration of how people make irrational decisions when it comes to taxes.

You can easily get close to 50% when you consider state and local income taxes and medicare taxes in some states.

I agree with you that some small business owners let the tax tail wag the dog often. To me it is a lot easier to just write off the business miles on a personally owned vehicle. You also have to account for personal miles driven on any business vehicle. I'm sure on the specifics but if you are using the vehicle primarily for personal use but it is owned by the business, the IRS is not going to look favorably on it.