Barrington, IL asked in Business Law and Tax Law for Wisconsin

Q: If I lease a vehicle for business use, how do I calculate percent business use vs percent personal use for tax purposes.

I want to know if in leasing a vehicle for Uber I can deduct roughly, say 80 percent (percentage of business use), of monthly payments minus the inclusion on my year end taxes.

Related Topics:
1 Lawyer Answer

Matthew M Montoya

Answered
  • Tax Law Lawyer
  • Lone Tree, CO

A: The rules are a bit different depending on whether your business is a Sole Proprietorship (Schedule C), a C-corporation, or S-Corporation. If you're like most taxpayers, you're probably using a Schedule C to report this to the IRS. In claiming business use of a vehicle, strict rules must be followed. Many taxpayers lose significant amounts of their deduction in an audit because they didn't properly document their business usage.

The IRS publishes a number of guides to provide the information you are seeking. In particular, IRS Tax Topic 510 and IRS Publication 463 will be helpful to you. For Publication 463, pay special attention to the recordkeeping section as well as the leasing a vehicle section.

If you still have questions, feel free to contact me and we can discuss a reasonable fee for reviewing and advising you on your specific factual situation as well as clarifying any remaining tax questions you have.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.