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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

    14th Jan, 2011
    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?