Question on Leasing / Auto expenses Deductions

Posted by irfan robbins on July 22, 2009, 11:32 am

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Question on Leasing / Auto expenses Deductions
*************************************************************

I am not clear about this....

Can a small biz write off "both" :

1. the full leasing costs of the vehicle
and
2.standard mileage deduction ( .55 cents per mile for 2009)

or is one allowed to deduct only one of the above ?

Please let me know.

Thanks,
Irfan Robbins

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Posted by Alan on July 22, 2009, 12:21 pm

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irfan robbins wrote:

> Question on Leasing / Auto expenses Deductions

> *************************************************************

> I am not clear about this....

> Can a small biz write off "both" :

> 1. the full leasing costs of the vehicle

> and

> 2.standard mileage deduction ( .55 cents per mile for 2009)

> or is one allowed to deduct only one of the above ?

> Please let me know.

> Thanks,

> Irfan Robbins

You use one or the other. Please note, that if you plan on using
the std mileage rate for a leased vehicle used in your business,
you must use that method for the entire lease period.
For more details on deducting travel expenses, see IRS Pub 463.

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<< that may be imposed upon the taxpayer. >>
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Posted by Seth on July 23, 2009, 8:00 am

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>I am not clear about this....

>Can a small biz write off "both" :

>1. the full leasing costs of the vehicle

>and

>2.standard mileage deduction ( .55 cents per mile for 2009)

>or is one allowed to deduct only one of the above ?

Either the standard deduction or leasing costs, gasoline, repairs,
etc. In either case, other costs not directly related to mileage
(tolls, parking, and the like) may be added.

Seth

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<< The foregoing was not intended or written to be used, >>
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Posted by Benjamin Yazersky CPA on July 24, 2009, 9:16 am

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> Question on Leasing / Auto expenses Deductions

> *************************************************************

> I am not clear about this....

> Can a small biz write off "both" :

> 1. the full leasing costs of the vehicle

> and

> 2.standard mileage deduction ( .55 cents per mile for 2009)

> or is one allowed to deduct only one of the above ?

> Please let me know.

> Thanks,

> Irfan Robbins

> --

A business is entitiled to either acutal costs or a standard cents per mile
determined by the IRS annually.

If taking actual deductions on a leased auto, there are several other things
you need to be aware of, such as the lease inclusion amount for personal
use.

You should consult your own CPA/tax advisor to see how to maximize
deductions for the business use of your auto.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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