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Leased vehicles tax benefit
Posted on 7/24/13 at 2:44 pm
Posted on 7/24/13 at 2:44 pm
What are the tax benefits for a leased vehicle used primarily for business use?
1
Posted on 7/24/13 at 3:22 pm to Paul Allen
You can deduct the lease payments attributable to business use of the vehicle. This may result in a greater deduction than purchase and depreciation of the same vehicle due to limitations imposed by Congress to discourage business purchases of luxury vehicles.
Posted on 7/24/13 at 4:26 pm to Poodlebrain
The entire lease payment can be written off?
If so, this is definitely something I need to look into.
If so, this is definitely something I need to look into.
Posted on 7/24/13 at 4:29 pm to Poodlebrain
So leasing a vehicle allows you to deduct the monthly expense (car note) entirely and mileage too?
Posted on 7/24/13 at 4:40 pm to mileypie17
quote:
The entire lease payment can be written off?
Sounds like maybe some of it can be, I've been researching it online. It's a bit confusing hence why I asked on here to see if anyone knew for sure.
This post was edited on 7/24/13 at 4:41 pm
Posted on 7/24/13 at 5:22 pm to mileypie17
quote:Not unless the vehicle is used exclusively for business. Otherwise you pro-rate between business and personal use. The deduction is limited to the business use percentage.
The entire lease payment can be written off?
Posted on 7/24/13 at 8:14 pm to Poodlebrain
What if it's 70% business use? Let's say lease payment is 400 per month, what would be the tax savings?
Posted on 7/24/13 at 11:23 pm to Paul Allen
I'm assuming no deductions can be made for lease payments when mileage for business usage is reimbursable?
Posted on 7/25/13 at 8:29 am to Jwodie
quote:
I'm assuming no deductions can be made for lease payments when mileage for business usage is reimbursable?
I'd also like to know this
Posted on 7/25/13 at 8:44 am to fratmonster
Maybe not the full mileage rate but a portion of it? I'd like some clarity on this as well.
Posted on 7/25/13 at 9:30 am to Paul Allen
I would think if you are deducting the lease payments then you cannot also deduct mileage....sounds like double dipping but I am no CPA
Posted on 7/25/13 at 9:46 am to Shankopotomus
quote:
I would think if you are deducting the lease payments then you cannot also deduct mileage....sounds like double dipping but I am no CPA
Agree...
Whats the current reimbursement, 56 cents a mile?
Posted on 7/25/13 at 11:25 am to Lsut81
Yeah it's either .54 or .56 cents per mile. Not sure...
Posted on 7/25/13 at 11:29 am to Paul Allen
quote:
Yeah it's either .54 or .56 cents per mile. Not sure...
Pretty gangsta... You figure if you get good gas mileage, you are only paying around .14c a mile in gas.
I know the other .40 is supposed to make up for wear and tear, but if you have a reliable older ride that isn't going to really depreciate extensively, you can make a little cash off the deal.
Posted on 7/25/13 at 11:33 am to Lsut81
Good point. I guess leasing a car if used for business is the way to go? I don't think a car that is purchased would have this same deduction?
Posted on 7/25/13 at 12:06 pm to Paul Allen
quote:
deduct the monthly expense (car note) entirely and mileage too?
I think you'll find that it's an either/or situation. A portion of the mileage allowance is to cover the capital or lease cost of the vehicle. If you expense the lease cost you would also expense gas, maintenance and insurance.
Posted on 7/25/13 at 12:12 pm to Paul Allen
quote:
I guess leasing a car if used for business is the way to go?
Well if you lease, you need to make sure that your lease allots enough mileage for you. If you go over your allotted mileage, they will arse rape you.
Hence why I said if you own a slightly older, reliable vehicle, that isn't going to devalue much... That would be the way to go.
Posted on 7/25/13 at 1:38 pm to Lsut81
15,000 miles per year isn't too bad. It's 18 cents per mile if you go over.
Posted on 7/25/13 at 1:46 pm to Paul Allen
quote:
15,000 miles per year isn't too bad. It's 18 cents per mile if you go over.
K, just making sure
Wouldn't want you to get one with a 12000 and you slaughter it and end up with 5k more miles than alloted.
Posted on 7/25/13 at 1:47 pm to Lsut81
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