In 2004, a gentleman named Arthur Boyce walked into an Idaho Ford dealership and purchased a new Expedition truck for his business. Or so he thought.
The IRS found that the arrangement didn’t really transfer an ownership interest to Mr. Boyce. Result: The court agreed with the IRS and ruled that Mr. Boyce had actually leased the truck and denied him a Section 179 deduction for its cost.
For more on the Boyce case, see “Section 179 Deduction Lost When Truck Purchase Was a Lease.”
It doesn’t matter what you call it. It doesn’t matter what you intend. It matters what is.
You need to make sure you don’t accidentally lease the vehicle you think you’re buying or buy the vehicle you think you’re leasing. ... Log in to view full article.