Sometime it looks like a duck, swims like a duck, and quacks like a duck. But it turns out, upon closer examination, that it isn’t really a duck!
That’s the story with vehicle leases.
You see, there are a lot of tax rules on the books that make what looks like a lease, turn out to be a purchase. And what looks like a conditional sales agreement can turn out to be a lease.
Confused? I’m not surprised, but we’ll make everything clear and show you how to get the deduction you’re entitled to. All you have to do is check out my new article titled Tax Tips: Section 179 Deduction Lost When Truck Purchase Was a Lease.
Three ways our fact-filled article can help you:
- We’ll explain the important “Section 179” deduction. Section 179 of the IRS tax code lets your business deduct the full purchase price of qualifying equipment. This includes many types of vehicles purchased or financed during the tax year. But leasing of these vehicles can be tricky. We’ll give you the facts when you read the full article.
- We’ll tell you the sad (and instructive) story of Arthur E. Boyce. Poor Arthur claimed a Section 179 deduction for the cost of his new truck. But because he didn’t interpret the tax law correctly, his purchase was deemed a “lease” by the IRS. Don’t let this happen to you. Read the full article.
- We’ll tell you what to do before you lease. If you want a Section 179 deduction on a qualifying purchase of an SUV or a pickup truck, then a nice clean purchase (with or without financing) is the way to go. If you want to lease the vehicle, get some professional advice before you sign on the dotted line. You’ll get all the facts when you read the full article.