Leased equipment with option to purchase

[lan76]

I am leasing a gooseneck trailer for my business. I have the option to buy it after 22 months. Do I depreciate this equipment or can I deduct my monthly lease payments? 

[tagteam · Accepted solution]

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@lan76 wrote:

I am leasing a gooseneck trailer for my business. I have the option to buy it after 22 months. Do I depreciate this equipment or can I deduct my monthly lease payments? 

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Deduct the monthly lease payments. To claim depreciation, you usually must be the owner of the property. 

See https://www.irs.gov/publications/p946#en_US_2018_publink1000107299

[lan76]

Thank you.