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New Member
posted Oct 10, 2022 2:57:40 PM

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

I am filing my 2021 taxes.

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2 Replies
Level 15
Oct 10, 2022 4:28:52 PM

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

 

@Critter-3 

Level 15
Oct 10, 2022 4:36:13 PM

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