The facts: Topic No. 510 Business Use of Car | Internal Revenue Service states under
Standard Mileage Rate:
- You must not have claimed actual expenses after 1997 for a car you lease.
- For a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate.
Actual Expenses - To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that's business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.
If this is your first year with a leased car, you have an important decision to make between standard and actual. Leased cars often do well with actual due to the leasing expenses. Each situation is unique so read and think about what you expect the next years with the leased vehicle to look like before deciding.
@geoholt3
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