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M
mgiansante14
December 5, 2023
Question

Leasing my car to my friend

  • December 5, 2023
  • 1 reply
  • 0 views

If I were to lease my car (currently financed) to my friend for a year, could I write off 100% of the monthly payment through my LLC? 

    1 reply

    A
    Anonymous_
    Employee
    December 6, 2023

    No. 

     

    If you're leasing the car to your friend at fair rental value for more than one year, then you would use a cost recovery method that is applicable to your type of vehicle. 

    M
    mgiansante14Author
    December 6, 2023

    Thanks for the quick response!


    So I wouldn’t be able to deduct the car payment as a business expense, even though the vehicle is being used 100% for business? 

    A
    Anonymous_
    Employee
    December 6, 2023

    You stated you were going to lease the car to a friend. Is that not correct?

     

    The car payment would not be a business expense for that purpose unless your business was leasing cars.

     

    You could, however, take depreciation deductions as I stated in the previous post.

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