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Aloha - if we Lease a basic car ( $30K, $331/mo + taxes) under

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Aloha - if we Lease...
Aloha - if we Lease a basic car (<$30K, $331/mo + taxes) under our S-Corporation (via a resolution approving us to do so), what of the lease amount can we deduct as a business expense - this is our only car, otherwise we live on the bus line & normally take a bus... ?
Submitted: 6 years ago.Category: Tax
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1/24/2011
Tax Professional: Brenda Guy, Certified Public Accountant (CPA) replied 6 years ago
Brenda Guy
Brenda Guy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 151
Experience: 20 years of working with income and estate tax issues for families and businesses.
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You will be able to deduct most of the lease payment. There is a small lease add back that is determined by the value of the car using IRS tables. As long as the driver of the car is an employee of the S corp the lease deduction will be allowed.

It is also recommended that you keep a mileage log to document your business miles.

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Customer reply replied 6 years ago
My wife is a Clinical Psychologist, at the present time she is the sole employee of her S-Corp, I am an officer... does this affect our ability to deduct "most of the lease payment" ?
Tax Professional: Brenda Guy, Certified Public Accountant (CPA) replied 6 years ago
No, that should be fine.
Brenda Guy
Brenda Guy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 151
Experience: 20 years of working with income and estate tax issues for families and businesses.
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Customer reply replied 6 years ago
mahalo XXXXX XXXXX (thanks very much), Brenda
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