I have a lease vehicle which I use more than 50% for bus., it was first acquired July 07 and used standard rate. My question. is can I also deduct the part of the lease amount (business use) in addition to Standard mileage? If not, for 2008, can I change to actual?
No. If you chose the standard mileage rate for a leased vehicle in the first year you must use it for the entire lease period. See publication 463 page 16 available at irs.gov. This is different than the rules for a vehicle you own.
Thanks for the prompt response. How about lease payments, can they be deducted in addition to Standard mileage?
No. they are part of the "actual" expenses.
Narontax,
The standard mileage rate already has a factor for lease payments (or depreciation, if you own the vehicle) built into it.
Just to clarify, not to correct Mimbreno; this is simply a different way of saying the same thing.
