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Question
After the 6000 in lease down payment, is the monthly cost of the vehicle lease across three years also tax deductible?
- Anonymous
Answer
Yes, you can deduct your lease payments so long as you use your car for business. Only the portion of the car used for business will be deductible. For example, if you drive your car a total of 15,000 miles in a year and 5,000 of those miles are for business, then you've used your car 1/3 of the time for business. Therefore, you'll be able to deduct 1/3 of the lease payments.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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