PTIN Seal

Business Start-ups

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Business Start-ups
  4. Why shouldn't I lease a car instead of buying it for my business, if it gives me a larger deduction than depreciation?

Why shouldn't I lease a car instead of buying it for my business, if it gives me a larger deduction than depreciation?

Man should never live by tax deductions alone! While leasing a car for business often results in a larger deduction, leasing does not necessarily make business sense. If you are going to travel an enormous amount of miles during the year(in excess of 15,000 miles/year), or if excessive wear and tear on the vehicle is probable, then do not lease the auto or truck. If you do decide to lease a vehicle given those circumstances, you may be shocked when you go to turn in the vehicle at the end of the lease.

Need Professional Help?

If you need help with "Business Start-ups" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.