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Yes, if you're using the vehicle for business purposes, you can generally deduct the business portion of your lease payments. Here's how it works:
First, you need to determine the percentage of the vehicle's use that is for business. You do this by dividing the number of miles driven for business by the total number of miles driven in the year.
Next, you apply this business-use percentage to your total lease payments for the year. This gives you the amount you can deduct.
For example, if you drove the vehicle 10,000 miles in the year and 8,000 of those miles were for business, your business-use percentage would be 80% (8,000 ÷ 10,000). If your total lease payments for the year were $6,000, you could deduct $4,800 (80% of $6,000).
Remember, you can only deduct the business portion of your lease payments. If you use the vehicle for both personal and business use, you'll need to divide your expenses between these uses based on the mileage.
Also, keep in mind that there are some special rules and limitations for leased vehicles, especially for what the IRS considers "luxury" vehicles. So, it's important to keep good records and possibly consult with a tax professional to make sure you're getting the maximum benefit.
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