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How to deduct car lease down payment for business use?
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How to deduct car lease down payment for business use?
Your lease down payment is deducted over the life of the lease, per IRS publication 463.
From IRS publication 463:
Deductible payments. If you choose to use actual expenses, you can deduct the part of each lease payment that is for the use of the vehicle in your business. You can’t deduct any part of a lease payment that is for personal use of the vehicle, such as commuting.
You must spread any advance payments over the entire lease period. You can’t deduct any payments you make to buy a car, truck, or van even if the payments are called lease payments.
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How to deduct car lease down payment for business use?
Dear TT Community (Help/Support Folks):
Where, on Turbotax, do I enter the business portion of my car lease downpayment? Under Business Expenses/Auto section, the program informs us one must spread the downpayment over the length of the lease (3 years in my case). But no info is given on where to enter this amount, under which section of the Business Income/Expenses section - or elsewhere - can you please specify? Thank you!
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How to deduct car lease down payment for business use?
Include the current year portion of the advance lease payment in the same box as your other lease payments made for the year. There is not a separate entry specifically for the advance lease payment amount attributed to the current year.
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How to deduct car lease down payment for business use?
Hi Annette,
Just to be sure I'm understanding you correctly:
My lease down payment for my new business-use vehicle (Toyota Corolla) was $4500 and according to the info I see on the TT help page, this must be expensed "over the life of the lease" (which is 3 years). Therefore, if I understand you correctly, I would add $1500 per year, for 3 years, to my total lease payments listed under Business Vehicle expense on Sch C. Is that correct? Thanks for clarifying!
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How to deduct car lease down payment for business use?
Yes, as @AnnetteB6 stated, add $1500 per year, for 3 years, to your total lease payments listed under Business Vehicle expense on Sch C.
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How to deduct car lease down payment for business use?
Many thanks!
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