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Article Date:
April 2017


Word Count:
636

 

 

Does the IRS Mileage Rate Cost You Deductions on a Leased Vehicle?


For three reasons, you have a high probability of damaging your wallet when you use the IRS mileage rate on a leased car, SUV, or pickup truck:

 

1.

The IRS creates the mileage rate based on your owning the vehicle.

2.

The IRS adds an unfriendly rule for those who use the mileage rate on a leased vehicle.

3.

The mileage rate includes a zero tax deduction for interest expense. Note that business taxpayers (not employees) may separately deduct vehicle interest.

 

When you lease your vehicle, the leasing company

 

·

assumes the risk of how much the vehicle will decline in value while you drive it, and

·

assumes the cost of financing the vehicle.

 

The leasing company does not do this for free. It builds a profit into its relationship with you. ... Log in to view full article.

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