My client lease a car 2021 and used 100% for business.Shall i compute the depreciation for straight line method?

Forum|Forum|4 years ago
September 9, 2022
8 replies
33 views

can you explain it further for a lease car?

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

You dont own a leased vehicle, so it wouldnt be depreciated.

Heres a quick blurb from IRS, but you may want to research further with the links on that page.

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses-5

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

sjrcpa

Level 15

And 100% business use sounds far fetched.

The more I know the more I don’t know.

IRonMaN

Level 15

Once again, my curiosity got the best of me. What cost basis were you planning on using for your plan to depreciate the vehicle?

Slava Ukraini!

PATAX

Level 12

@IRonMaN To compute the cost basis I would figure first the total amount of the lease payments spread out over the estimated life of the vehicle and then discounted for the residual value adjusted by the annual inflation rate and then divided by the number of full moons between the winter solstice and the summer solstice in the last year of the Mayan calendar.😉

dd4vols

Intuit Community Champion

But, when they make Daylight Savings Time year-round, will that, eventually make it harder to define the those fleeting moments, without altering the well-respected sun dial shadow method of calculating time??

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