Leased Vehicle Sales Tax Deduction

I have a 3 year lease on my car. Do I deduct 100% of the sales tax at time of purchase or do I spread it over the 3 year term of the lease?

posted

It depends. Did you pay the entire amount when you acquired the vehicle, or is it being spread out over the term of the lease? If you paid 100% of it at the time of purchase you go ahead and deduct 100%. If the tax was spread out over the three year term of the lease you deduct over three years.

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