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Gwailo

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Sep 29, 1997, 3:00:00 AM9/29/97
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Bill Walter wrote:

> I own my own business and have just leased a vehicle for the
> business. Do I understand correctly that the entire monthly lease
> payment is tax deductible? Is the state sales tax on the monthly lease
>
> tax deductible and is the insurance on the vehicle tax deductible?
> Do I still take the .31 cents a mile deduction on the leased vehicle?
>
> Thanks,
> Bill W.

Get IRS publication 463. Your issues are: (1) do you use actual expenses
(insurance, etc.) or standard mileage, (2) how good is your recordkeeping
at distinguishing personal and business mileage, (3) sales tax is part of
the montly lease payment, not deducted separately, and (4) it may be that
not all the monthly payments are deductible, as the result of a formula
that tries to equate the tax result of leasing with that from buying a car
for business and taking depreciation -- which is limited if the cost is
above $16,000 or so.

'Gwailo


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