For many entrepreneurs, coaches, consultants, and small-business owners, the journey toward financial efficiency begins with one uncomfortable realization: you are paying the IRS far more than you should simply because you’re not using the tax code strategically.
In a recent discussion on how to write off a car lease through an LLC, several powerful truths emerged about business ownership, deductions, and the concept of “corporate life.” Suppose you’re a professional looking to optimize your tax strategy, reduce unnecessary tax liability, and align your money with your business goals. In that case, understanding these principles isn’t optional; it’s transformative.
This article breaks down the key learnings from the session. It expands on them to create a practical, professional guide designed for founders, executives, and entrepreneurs who want to operate at a higher level of financial intelligence.
Why Entrepreneurs Need To Think Differently About Expenses
Across 81,000+ pages of tax code, the vast majority is not about how you pay taxes; it’s about the legal ways you can reduce them.
Yet most people:
- Don’t deduct their phone
- Don’t deduct their car
- Don’t deduct their home office
- Don’t document mileage
- Don’t track business vs. personal use
- And ultimately leave money on the table
Not because they lack intelligence or opportunity, but because they haven’t been taught to think like a business owner.
While employees are restricted to a narrow set of deductions, entrepreneurs can access a wide range of powerful tax advantages by structuring their businesses correctly.
This leads us to the first primary principle of the video:
1. You cannot Claim Corporate-Level Deductions Without a Corporation
It may sound obvious, but this is where most people fail:
You need a real business structure before you can apply business tax strategies.
If you’re operating as:
- A sole proprietor
- A gig-worker
- A Schedule C filer
Your opportunities for meaningful tax planning are minimal.
To begin leveraging deductions like vehicle leases, your first step is:
✓ Form an LLC (or another appropriate structure)
✓ Separate your business identity from your personal life
✓ Start spending as a business, not just earning as one
This is the foundation of what the speaker calls “corporate life,” living in a way where your business structure supports your lifestyle, not the other way around.
2. When Can You Write Off a Car Lease?
Once your LLC is in place, you gain access to one of the most flexible and high-ROI deductions: your vehicle.
But here’s the key
It must serve a legal business purpose.
This doesn’t mean you need to be an Uber driver or delivery service.
A vehicle used for:
- Client meetings
- Training sessions
- Real estate showings
- Coaching engagements
- Travel between business locations
- Speaking events
- Picking up supplies
Can qualify for legitimate business use.
Professional reality?
Most entrepreneurs use their vehicle for business far more often than they realize, usually 70–90% of the time.
3. Leasing vs. Buying: The Video’s Focus
This discussion focuses on leasing, not purchasing, because the structure and rules differ.
With a lease, the IRS allows you to deduct:
- The business-use percentage
- Of the total lease cost
- Including certain associated expenses
Example:
If your yearly lease payments total $4,200, and you use the car 50% for business, you may deduct $2,100.
Simple in theory.
Tricky in execution unless you track it properly.
4. Best Practices for Deducting a Vehicle Lease
A. Track Mileage or Usage Always
This is non-negotiable.
You must document:
- Miles driven for business
- Miles driven for personal
- Dates, purposes, and trip details
Digital apps like MileIQ or QuickBooks make this easy and help protect you in case of an audit.
B. Decide Whose Name the Lease Belongs In
Option 1: Lease in your personal name, and submit reimbursement forms to the LLC.
Option 2: Lease the vehicle in the LLC’s name and reimburse the business for personal use.
Which option is better?
It depends on:
- State registration rules
- Insurance premiums
- Liability concerns
- Whether your family uses the vehicle
In some states, commercial insurance is costly.
In others, putting the vehicle under the LLC simplifies everything.
Example from the video:
Nevada is LLC-friendly, making company-held vehicles more efficient.
C. Understand Section 179 (Even Though It’s Changing)
Historically, Section 179 allowed businesses to write off heavy vehicles (6,000+ lbs) up to ~$40,000 in year one.
But states are modifying rules.
The deduction still exists, but details vary widely.
This reinforces the speaker’s constant reminder:
You need a tax strategist, not H&R Block.
TurboTax and similar tools report history
They do not plan a strategy.
5. Avoid the Most Common and Costly Mistake: Commingling
A single word can ruin your deduction:
Commingling.
This includes:
- Using your business car for personal errands
- Not documenting mixed use
- Not reimbursing your business (or yourself)
- Letting family members use the vehicle without a structure
Proper boundaries matter.
Some families, the speaker coaches even create:
A separate equipment company
That holds all their vehicles, then leases each one to their operating LLCs.
This reduces liability and keeps records extremely clean.
Is it advanced?
Yes.
Is it legal?
Absolutely, with correct documentation.
6. The Bigger Picture: Living “Corporate Life.”
The heart of this teaching isn’t really about cars.
It’s about understanding the wealth mindset behind the tax code.
Corporate life means:
- Operating strategically
- Structuring your expenses
- Separating personal from business
- Using legal tools to reduce taxes
- Thinking like a CEO, not an employee
Employees have limited deductions.
Business owners have endless opportunities if they use them carefully.
7. Action Steps for Professionals
If you want to begin writing off your car lease, here’s the roadmap:
1. Set up the correct entity, LLC, S-Corp, or structure recommended by a strategist
2. Track mileage consistently and accurately
3. Decide whether to lease personally or through the LLC
4. Keep clean documentation for business vs. personal use
5. Reimburse the company (or yourself) appropriately
6. Consult a strategist to calculate your exact deductible percentage
7. Avoid commingling at all costs
Final Thoughts: Entrepreneurs Need to Start Playing the Right Game
Writing off a car lease isn’t a loophole.
It’s not a trick.
It’s not aggressive tax planning.
It’s simply using the tax code as it was designed to support business owners who keep the economy running.
If you’re not deducting what you legally can, you’re making the IRS richer…
And you’re poorer.
This is your invitation to step into a more strategic financial life, a corporate life.
