Rules regarding lease payments and tax deductions.
Question: If you lease a vehicle, can you deduct the cost of the lease payments plus the standard mileage rate?
Answer: If you lease a car you use in business, you may use either:
Use the standard mileage rate. If you choose this method then you must use the standard mileage rate method for the entire period (including renewals).
Or claim actual expenses, which would include lease payments. If you choose this method, only the business-related portion of the lease payment is deductible. This deduction is reduced by an income inclusion amount.
Leased Vehicle – Can I Deduct My Payment For Tax Purposes?
Filed Under: IRS Tax Advice
Tags:
FREE
Consultation
No Obligation
“Thanks to Fresh Start, I am feeling more and more confident about finally getting caught up after all these years.”
“I will certainly refer anyone I come across who needs your services for sure.”
“I cannot thank you enough for handling my IRS issues. After dealing with another office who did nothing, you guys did everything that you promised. Thanks again, especially Steve Jacob for guiding me every step of the way.”