Leasing a vehicle | what can I expense as sole proprietor?

Forum|Forum|1 year ago
November 14, 2024
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If I lease a vehicle for my business, in my name as Sole Proprietor, is the monthly lease payment expensed at 100%? Or does the lease follow the same rules as a personal vehicle (percent driven business v personal)? What are the general guidelines?

Ask the Experts - Biz Tax Moves - Nov 2024

KarriC

Business expenses are those expenses that are directly related to your business.

You will only be able to take 100% of the expenses if ALL use of that vehicle was for business only. For instance, you couldn't drive from your home to your place of business and call that business use since it's actually a commute, and not a business expense. The business use of a vehicle that's leased follows the same rules as a personal vehicle in regard to expenses.

Here's a link to more information on self-employed vehicle expenses:

TurboTax - Business use of Vehicles

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