I leased my car for 3 years and secured a loan for the car 8/2021. How do I handle this? I am a realtor

[caroli9]

I am filing my 2021 taxes.

[Anonymous_]

How have you been handling this (prior to purchasing the car)?

@Critter-3 

[Critter-3]

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.

• • 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.

https://turbotax.intuit.com/tax-tips/small-business-taxes/business-use-of-vehicles/L6hi0zzzh