Small Business Services

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.

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