Announcement

Collapse
No announcement yet.

Car lease as tax deduction

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Car lease as tax deduction

    I am currently on W2 job and lease a car that I use for work predominantly. We use my wife's car for any household or personal use for the most part. Can I deduct the car lease payments on my taxes?

  • #2




    I am currently on W2 job and lease a car that I use for work predominantly. We use my wife’s car for any household or personal use for the most part. Can I deduct the car lease payments on my taxes?
    Click to expand...


    I do the same.

    The question is do you use your car for business mileage? (Commuting doesn't count)

    As a W2, you will also need to clear the 2% floor for Schedule A deductions so it also depends how much you make and how much are your lease payments.

    You'll still need to keep a mileage log even if you are deducting lease payments. (Anecdotal but I've heard reporting a car as 100% business use tends to be a large audit flag)

    I lease some pretty expensive cars and in the end, it's a fairly small deduction for me as a W2 (it would be better utilized as an owner / partner / independent contractor / etc). But hey, I want to be driving those cars with or without the deduction and as WCI always says, a small deduction still beats a kick in the teeth.

    Comment

    Working...
    X