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Best way to purchase company car?

Discussion in 'General Investing Discussion' started by Room for improvement, 6th Mar, 2011.

  1. Room for improvement

    Room for improvement Member

    Joined:
    14th Jan, 2011
    Posts:
    12
    Location:
    VICa
    Hi all,

    I am interested in setting up ABC company to own assets that my current company XYZ will use (hopefully to protect these in the event my trading company is sued etc).

    I was thinking that ABC company would purchase the assets (I would loan the money to the company) and would lease or allow XYZ company to use them under license/agreement.

    Is this a more tax effective way to purchase a car to be used by a company as XYZ company would be able to claim the lease deductions straight away or is there a benefit to having my XYZ company purchase the car outright?