Can I write off the lease payments of a business car if I leased it under my name (not partnership’s), and pay for it with the business CC?

[EthanH]

Opus> Thanks again for the advice. I will follow your recommendations for now, and am also in the process of contacting a CPA.
Am I required to re-pay NY sales taxes if the lease changes to the business' name?

[Opus 17]

I don't know, that would depend on NY sales tax law.

[Carl]

This is just a heads up for ya, but depending on the terms of the lease, I would not be surprised if the dealer didn't require a complete payoff of the current lease, followed by a new lease with new terms for the business. The dealer is after all, in business to make money, just like you are. 🙂  Don't forget to update the vehicle insurance too, or you'll find yourself in deep kimchee should their be an accident.

[EthanH]

The vehicle has been leased for less than a month, and the dealership financials dept agreed to change the primary name to the business' (with a hefty fee).
Now I will have to look into sales taxes with the DMV.
Thanks for all your input!

[TaxGuyBill]

I'm a bit late here, but if you haven't changed things yet, FIRST talk to your insurance company.  I have 'heard' that vehicle insurance can cost quite a bit more if the vehicle is owned by a separate Entity.

[Anonymous · Accepted solution]

if the partnership took the deduction it needs to amend its return.  (it didn't own the vehicle so it can't take the deduction) one way you can write off the the CC charges is for the lease payments to be put to your draw account.    an alternative would be to specifically   allocate 90& of the charges against your share of the income.  10% would then be specifically allocated to your share of non deductible expenses.  in addition regardless of how its done you lease deduction must be reduced by an lease inclusion amount. see

https://www.irs.gov/irb/2017-14_IRB rev. proc. 2017-29