To enter your vehicle lease expenses, please follow the instructions below:
Go To:
1. Business
2. Business and Income
3. Business Income and Expense
4: Business Vehicle Expense
From there add your vehicle and follow the prompts. When asked answer I lease this vehicle
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.
A
Anonymous
May 2, 2021
What if the lease is in your parent's name, but they got the car for you and you make the lease payments? Can you answer "Yes" to "I lease the vehicle" so that you can write off the mileage or the lease payments? After all, you are making the payments.