Please see this LINK for more information.
Buy or lease?
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.
