If I lease my car, is that considered a car rental for deduction? Would I be able to deduct my monthly lease payment?

No, it is not a car rental per se, but yes, you can deduct the business portion of your car lease.

Actual Expenses method of deducting your car for work. It is based on the expenses you actually incur in the operation of your vehicle. It includes things like:

·         gas purchases

·         repairs

·         oil changes

·         tire purchases

·         car washes

·         insurance

·         and even vehicle depreciation and lease payments

However, you can only claim the percentage of expenses that apply to the business use of your vehicle. To compute this, you must know how many miles you drove for business purposes and how much you drove for personal reasons.

TurboTax will walk your through this method.

To enter your vehicle mileage for your business follow these steps:

1.       Click the Business tab then click I'll choose what i work on.

2.       Scroll down to Business Income and Expenses and click Update next to Profit or Loss from Business.

3.       Click Edit next to your business. If you do not see this create your business.

4.       Under Business Expenses click Start/Update on Business Vehicle Expense.

5.       This is the Vehicle Summary Screen.

·         Follow along the interview and select Actual Expenses