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:

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

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

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.