re: If an employer pays full mileage rate, does leasing make sense?

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If your wife is being reimbursed for mileage, and it's not taxed, you can't additionally take tax deductions for the car, to the extent in which you were reimbursed. This includes mileage deductions and/or actual expense deductions.

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Can a taxpayer choose the actual expense method when being reimbursed the full IRS rate? I would think they can. If the actual expense method is higher than what is reimbursed, the taxpayer shouldn't be penalized. If actual expenses are $10,000 and standard mileage rate reimburses $9,000, taxpayer should be able to deduct $1,000, subject to 2% misc deduction rules.

Personally, the tax deduction question should not factor into this decision. Run the numbers with a 6 or 7 year note. Factor in the the value of the car vs the balance of the note at the end of 3 years. Compare that with the residual value of the lease.