Hello soccermom dad6,
Thank you for using Just Answer.
A tax-oriented lease is a lease under which the lessor will be treated by the IRS as the owner of the leased property for federal tax purposes and permitted to take tax benefits (eg., depreciation deductions on the leased property). All rentals paid by a lessee(you) under a tax-oriented lease are deductible for federal tax purposes.
Generally, a non-tax-oriented lease is any lease that is neither a "guideline lease" nor a "TRAC lease". Because it is not a lease for tax purposes.
On the lessee's and lessor's tax returns, a non-tax-oriented lease is treated like a loan. Thus, the lessee(you) can deduct only the "interest portion" of each rental payment.
Because a non-tax-oriented lease is treated like a loan, the tax benefits are not available to the lessor. Therefore, the lessee(you) may take depreciation deductions on the leased equipment. Consequently, the rental payments are usually higher than in a tax-oriented lease.
I hope this information is helpful,
So if I understand correctly, then we can take the depreciation deductions on the delivery truck, and the "interest portion" of each rental payment or do we use the regular payments.
If it is the interest portion that we would deduct and not the full payment, then how would we figure out what that amount would be since we never received any statements detailing what that would be.
You are correct about your understanding.
As far as how much is the interest, you will need to look back at your paperwork and see the interest rate. After you know the interest rate you could use one of the sites like this (http://www.efunda.com/formulae/finance/lease_payment.cfm ) to calculate the amount.
You may be able to contact the lessor and inquire as to the amount also.