Leased vehicles over 6000 lbs

[abs96]

It is my understanding that leased vehicles over 6000 lbs can take a Sec. 179 - limit of $30,500 but cannot take depreciation if using actual expenses which includes lease payments, insurance, fuel, etc.  

In order to take the Sec. 179 you must complete an asset entry worksheet.  It asks to complete the depreciation and calculates an amount which I cannot deduct if my thinking is correct.  

I have also completed a car/truck expense worksheet which is where it asks if the vehicle was leased.  It does not ask if the vehicle was leased on the depreciation asset entry worksheet.

If I have to complete the depreciation information, what depreciation is used for vehicles over 6000 lbs?  MACRS - 5 yrs - 200% DB or 150% DB or neither of these.

[Accountant-Man]

Are you capitalizing the lease? If not, how can you depreciate it?

[abctax55]

The depreciation 'limit' for a leased vehicle is Z E R O.

You don't own anything; so nothing to depreciate.

[abctax55]

@Accountant-Man 

OMG... capitalized leases.... I had to do a thesis paper on them waaaaaaaaaaaay back in my college days.

[Just-Lisa-Now-]

"It does not ask if the vehicle was leased on the depreciation asset entry worksheet."

You should be completing the asset info on the Car and Truck worksheet, not the Asset Entry worksheet on the front of the Sch C where other assets get added.

[IRonMaN]

I guess I must have been sick the day they taught that you could depreciate a vehicle with an operating lease.  And for the record, I don’t think the 6000 pounds changes the answer