zumbalak

I have an SUV for business use and we go with the depreciation method. You can depreciate the full value of the vehicle over 5 years. If financed monthly payments will not be written off. But vehicle expenses can be such as gas, maintenance, interest, tires, etc.... If you are writing off the expenses you can not write off the mileage but still are required to submit the mileage info.

In lease I do not know how things work exactly. I think you can either depreciate the car's certain value over the leased period, or you can write off a certain amount of monthly lease payments. After the write off you also take the gas and other related expenses or mileage off as well. Meanwhile the total lease monthly payments write off depends on the total income gained from the business I think. Not so sure. So if your business is making 10K a year and you are driving a S550 that is a red flag.

There is an IRS section about this somewhere on IRS.gov

giff9

Thanks for the help... I just got to figure whats best for me

Dr.quattro

roughly $10k deduction each year, as well as gas, maintanence and expenses such as insurance.

sparkhill

You really need to talk to tax expert. I am not one and I don't want you to get into any trouble with the IRS.