Leasing vs Buying: What are the tax implications?

What are the tax implications of leasing a car compared to buying one?

Leasing a car often allows you to deduct monthly payments as a business expense, while buying may offer depreciation benefits.

Can you explain how depreciation works for purchased vehicles?

Sure! When you buy a vehicle, you can depreciate its value over time, which can reduce your taxable income.

Are there any tax benefits for electric vehicles whether leased or bought?

Yes, both leased and purchased electric vehicles may qualify for federal tax credits, which can significantly reduce costs.

What should I consider when deciding between leasing and buying?

Consider factors like your budget, how long you plan to keep the vehicle, and your tax situation to make the best choice.