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

can you explain it further for a lease car?
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8 Comments 8
Just-Lisa-Now-
Level 15
Level 15

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...


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15

And 100% business use sounds far fetched.


Ex-AllStar
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 15

@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
Level 10
Level 10

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??

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.
PATAX
Level 15

@dd4vols only Albert Einstein, Nicola Tesla, or Jessica Simpson can answer that question.😉

IRonMaN
Level 15

I picked up a used ACME sun dial years ago and that is all I use for telling time these days.  It still works quite well, although I have to admit you do tend lose track of time during a Minnesota snow storm.


Slava Ukraini!
dkh
Level 15

Jessica Simpson.....😂🤣😂😂🤣