Income & Expenses
Question: If you lease a vehicle, can you deduct the cost of the lease payments plus the standard mileage rate?
If you lease a car you use in business, you may not deduct both lease costs and the standard mileage rate. You may either:
- Deduct the standard mileage rate for the business miles driven. If you choose this method then you must use the standard mileage rate method for the entire lease period (including renewals).
- Claim actual expenses, which would include lease payments. If you choose this method only the business-related portion of the lease payment is deductible.
Both of these deductions are reduced by an income inclusion amount.
Category: Small Business, Self Employed, Other Business
Subcategory: Income & Expenses