Skip to main content
June 4, 2019
Question

Can I Claim a Percentage of My Lease Payment as a Work Related Expense?

  • June 4, 2019
  • 1 reply
  • 0 views
I need to use my own vehicle to drive to various stores to perform my job duties.  My employer already compensates me for mileage more than the IRS' rate.    

The percentage of work/personal use of my vehicle is 75/25.  

Would I be able to claim 75% of my lease payment as a work related expense?  and, oil changes/tires/brakes...maintenance costs?

1 reply

MargaretL
Employee
June 4, 2019

Yes, you can claim business percentage of the lease on the car if you deduct actual expenses and depreciation of the car instead of using standard mileage rate as your vehicle expense deduction. When going through TurboTax vehicle expenses in the job-related expenses section,  you can choose to claim standard mileage rate based on your business miles driven OR claim all of your car expenses (75% of them that is) such as lease, gas, oil, repairs and depreciate your car. You can choose the method that gives you better outcome.  Please note, however, that, if you choose to depreciate your car and use actual expenses, you will have to continue to do so in the future years; you won't be able to switch back to standard mile rate.