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We leased an auto for a small business. How much (if any) of the down payment is tax deductible in the year the automobile is leased?

April 26, 2017Auto automobile deductible down payment leased small business tax year

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We leased an auto for a small business. How much (if any) of the down payment is tax deductible in the year the automobile is leased?

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You must spread any advance lease payments over the entire lease period. You cannot deduct any payments you make to buy a car even if the payments are called lease payments. If you lease a car that you use in your business, you can deduct the part of each lease payment that is for the use of the car in your business. You cannot deduct any part of a lease payment that is for commuting to your regular job or for any other personal use of the car.