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Dutch777
New Member

I leased my car in 2016. Can I deduct tax amount in my leased car monthly payments in 2018?

In 2018 I paid $88.91 every month as a part of my car lease payments. Basically I have my monthly leased car payment broken down into two parts: 'Base payment' and 'Tax payment' (as I see it in the online banking system). Tax payment is $88.91, every month. 

Can I deduct these tax payments? I live in WA and I am going with federal itemized deductions (as suggested by TurboTax). 

Lease inception was at the end of 2016. This question is not about tax deduction at lease signing. 


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Accepted Solutions
JulieR
Expert Alumni

I leased my car in 2016. Can I deduct tax amount in my leased car monthly payments in 2018?

You may only deduct your vehicle lease payments if you are self-employed.  Due to Tax Reform, Employee Business Expenses once reported as Miscellaneous Itemized Deductions have been suspended for the tax years 2018 through 2025.

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2 Replies
JulieR
Expert Alumni

I leased my car in 2016. Can I deduct tax amount in my leased car monthly payments in 2018?

You may only deduct your vehicle lease payments if you are self-employed.  Due to Tax Reform, Employee Business Expenses once reported as Miscellaneous Itemized Deductions have been suspended for the tax years 2018 through 2025.

Dutch777
New Member

I leased my car in 2016. Can I deduct tax amount in my leased car monthly payments in 2018?

Thank you for explanation. It doesn't apply in my case then - I'm not self-employed/don't have my own business.  

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