- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
You can use the standard mileage method to take an expense deduction for work-related miles you drive, whether leased or owned. The standard mileage method includes allowances for gas, repairs, maintenance, and the vehicle cost (depreciation or lease payment).
If you want to use the actual expense method to deduct the lease payments, you must keep track of all your vehicle expenses (including gas, repairs, etc) and all your work mileage and personal mileage, and only deduct the percentage of expenses equal to the percentage of work use. Additionally, you may have to make an extra adjustment for leased vehicles, see chapter 4 here https://www.irs.gov/pub/irs-pdf/p463.pdf
You can add tolls and parking on top of whichever method you use for vehicle operating expenses.