To enter your vehicle lease expenses, please follow the instructions below:
Go To:
1. Business
2. Business and Income
3. Business Income and Expense
4: Business Vehicle Expense
From there add your vehicle and follow the prompts. When asked answer I lease this vehicle
You can use the either the standard mileage or actual expenses method for a leased vehicle. However, if you use the standard mileage rate, you cannot switch to the actual expense method in a later year.
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- If you use the standard mileage rate for a leased vehicle, the lease payment amount is not deductible.
- If you use the actual expenses method, leased vehicles are not depreciated. Instead, the business portion of the lease payment is deducted.
