Can I Use the Cash I Saved for Taxes On A Purchase I Can Write Off?

Summary

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Episode Overview

Title: Can I Use the Cash I Saved for Taxes On A Purchase I Can Write Off?
Podcast: Ramsey Everyday Millionaires
Hosts: Dave Ramsey, Dr. John Delony
Aired: September 5, 2025

This episode tackles the age-old small business dilemma: Should you spend money to reduce your tax liability, or simply set aside enough to cover your tax bill? A caller named Roberto seeks advice after a business windfall, asking whether he should use money saved for taxes to buy a company vehicle as a write-off or just pay the taxes. Dave Ramsey and Dr. John Delony break down the decision with practical wisdom, common pitfalls, and their trademark candid advice.

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Key Discussion Points & Insights

1. The Caller’s Situation ([00:09]–[01:12])

• Roberto explains he’s receiving a $45,000 payment for company contracts.
• He expects to owe $13,000–$15,000 in taxes and asks if he should use that cash for a business vehicle (a potential tax write-off) or just pay his taxes as planned.
• He notes occasional use for a company vehicle (hauling equipment).

2. Immediate Advice: Pay the Tax ([01:11]–[01:39])

• John Delony: “I’d write a quarterly check.” ([01:11])
• Dave Ramsey agrees: Directly paying taxes is clean and responsible, avoiding trouble with the IRS.

3. Debunking the “Tax Write-Off Myth” ([01:21]–[02:52])

• Dave and John discuss the flawed logic of generating an expense only “to save on taxes.”
• Dave Ramsey:

  “It’s a false choice when people say, well, I’m gonna create another expense in order to lessen my taxes.” ([01:39])

• They stress buying a depreciating asset (like a vehicle) just to lower your taxable income doesn’t actually benefit most small business owners.
• Dave recommends caution: “Be smart… sock it away for the taxes.” ([02:52])
• John Delony elaborates: Only at massive income levels would complex investment and tax strategies potentially outweigh simply paying your taxes; for the average business owner, straightforward is best.

4. Handling Unexpected Income ([02:52]–[03:19])

• Dave walks through the wisdom of setting aside all the estimated taxes, then letting your CPA adjust later if expenses lower your tax bill.
• Dave Ramsey:

  “The point is, it’s all sitting there, right?” ([03:37])

5. Final Take: Buy What You Need—With Profit ([03:49]–[04:07])

• Roberto floats buying a smaller, used vehicle (not a $40–50K truck, but maybe $15–18K).
• John Delony:

  “Well, you got the cash to do that on your own.” ([04:04])

• Dave Ramsey:

  “Use the $30,000 you’re going to take home in profit, and take a piece of that and go buy that truck.” ([04:07])

6. The Overarching Message

• Don’t play games with the IRS—it’s never worth the risk or stress.
• Pay your taxes honestly and responsibly; if you have the cash, buy business assets based on necessity and affordability, not just for a write-off.
• Leave advanced tax games to those with bigger numbers, robust systems, and excellent advisors.

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Notable Quotes & Memorable Moments

• Dave Ramsey:

  “It’s a false choice when people say, well, I’m gonna go create another expense in order to lessen my taxes.” ([01:39])

• John Delony:

  “I’m going to have a sleep tax. I’m going to know there’s not a chance the government’s going to come for me at the end of the year.” ([02:28])

• Dave Ramsey:

  “The juice isn’t worth the squeeze on that.” ([03:37])

• John Delony:

  “Well, you got the cash to do that on your own.” ([04:04])

• Dave Ramsey:

  “Use the $30,000 going to take home in profit, and take a piece of that and go buy that truck.” ([04:07])

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Important Timestamps

• 00:09: Roberto lays out his tax dilemma and asks about buying a company vehicle to “write off.”
• 01:11: John and Dave’s initial advice—just pay the tax.
• 01:39: Dave’s “false choice” argument debunking the write-off myth.
• 02:28: John’s “sleep tax” moment, advocating peace of mind over risky tax maneuvers.
• 02:52: Dave’s recommendation on setting aside the tax money and adjusting later if needed.
• 03:37: Dave reminds listeners not to play tax games; John agrees.
• 04:04–04:07: Closing advice—buy assets if needed with profit, not as a tax strategy.

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Tone & Takeaways

The hosts’ classic directness shines—frank, practical, with a hint of humor. Dave and John urge small business owners to avoid trying to outsmart the tax system with unnecessary purchases: Pay your taxes, keep things simple, and buy your business assets for real business needs, not just because “it’s a write-off.” This no-nonsense counsel is invaluable for entrepreneurs tempted by tax myths.

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Transcript

[Caller]

Foreign.

[Dave Ramsey]

This episode is brought to you by SmartVestor.

[Caller]

Connect with an investing pro near you.

[Dave Ramsey]

At RamseySolutions.com SmartVestor Roberto is up next in St. Louis. Roberto, how can we help?

[Caller]

So thanks for taking my call.

[Dave Ramsey]

Sure.

[Caller]

So I got a quick question. I have. I've been running a small business for the past 20 plus years, and I've done pretty well. And so what's going on is I've landed a couple of contracts with some school districts in my area, and I'm receiving a check here in the next month or so for about $45,000 or so. And so I contacted my. My tax lady, and I asked her what I should do with my taxes, whether I should go ahead and pay them quarterly or if I should set them aside at the end of the year. So with doing that, knowing that my taxes are going to be roughly 13 to $15,000, my question to her was, can I take that money and have my business buy a. Pretty much a company vehicle, or should I just go ahead and set that money aside, pay for the taxes, and just let it. Let it ride?

[John]

I'd write a quarterly check.

[Dave Ramsey]

Dude, me too. What did she say?

[Caller]

She said that she would have to look into it. What would be the best in my best interest?

[Dave Ramsey]

All right, well, that's surprising because most tags people go for the, yeah, just go. Go spend it. And it doesn't sound to me and anything you laid out to John and I right there that you need a truck.

[Caller]

It's. It's one of those things that sometimes I do just, you know, haul equipment, haul ladders.

[Dave Ramsey]

But you're not gonna.

[John]

You're not gonna skirt around the end of your tax bill.

[Dave Ramsey]

That's exactly right. It's a false choice when people say, well, I'm gonna go create another expense in order to lessen my taxes. If I was running a small business like you and I got this 45, I do exactly what John said. I go ahead and pay the quarterly estimate, and that way I'm staying on top of things, and I'm not, you know, messing around with the irs. So, no, I would not go buy something.

[Caller]

I don't want to mess with the irs.

[John]

I don't either. If this was. If you were getting. If you were getting a check for 4.5 million and you had a good system, a good partnership with your financial advisor and your tax person, and y' all figured out, hey, you can take that quarterly and you can postpone it and invest it here and take. That's. But you're dealing in way more zeros there. That's Dave Ramsey kind of money. I don't have. That doesn't sound like you have that. Like, I'm going to pay that quarterly. And here's what I'm going to any. I made 2% on the gap between, dude, I'm going to have a sleep tax. I'm going to know there's not a chance the government's going to come for me at the end of the year. In fact, they may write me a small check. That's what I'm going to do. But I want you to follow your tax professional's advice. But anytime someone says, hey, you're gonna have a $14,000 tax bill, so pay for a depreciating asset, that's going to be 50,000 and that will help you put. Man, that's just.

[Dave Ramsey]

Yeah, in that case, I wouldn't do that. And a lot of tax pros will do that. Ramsey tax pros are not going to, they're not going to tell you that. And so in this case, be smart. You get windfalls like this. As a small business owner, sock it away, you know, for the taxes. At the end of the day, to me, I wouldn't be, I wouldn't be bothered if you took option two that you threw out to us, which is, I'm going to put it aside to the end of the year and see if there are.

[John]

That's over my skis on tax stuff.

[Caller]

I don't know.

[Dave Ramsey]

You can do that because you've put it aside. And so your, your tax pro is kind of going, all right, set all of it aside. The, you know, the whole 15 that we're anticipating. And then as we do your books, if you did have more expenses, what I estimated was going to be 1315. Well, you know what, you're actually only going to owe nine. But the point is it's all sitting there, right?

[Caller]

And.

[Dave Ramsey]

And so either one of those option is best, but going out and buying something to try to play games with taxes. John laid that out beautifully. And that's just. It's not. The juice isn't worth the squeeze on that.

[Caller]

So I do not like messing with the irs, for one. And, and on the second note, I was looking at something just to kind of offset the, you know, not 40, $50,000. Truck. Truck, you know, that's ridiculous. But something 15, 18,000.

[John]

Well, you got the cash to do that on your own.

[Dave Ramsey]

Yeah, that's true.

[John]

Use the $30,000 going to take home in profit and take a piece of that and go buy that truck.