Leasing Car for Business

[taxjungle]

Hello Fellow Members,

My question is: TP has two autos for business that I will call auto #1 and Leased auto #2. TP has been claiming Actual expenses for auto #1 in prior years. Auto #2 is a Leased auto that he is used for business during 2012. When I calculate the Actual expenses for both autos the amount comes to $9878 BUT his Sch C Line 9 is showing only $5821. The Actual expenses for auto #1 is $1777 and the Actual expenses on the Leased auto #2 is $8101 (for a total of $9878). Why is this happening? Are lease payments limited or what is going on? Have I missed something? I would appreciate some feedback. Please inform me! Thank you.

[Gene V]

Hello Fellow Members,

My question is: TP has two autos for business that I will call auto #1 and Leased auto #2. TP has been claiming Actual expenses for auto #1 in prior years. Auto #2 is a Leased auto that he is used for business during 2012. When I calculate the Actual expenses for both autos the amount comes to $9878 BUT his Sch C Line 9 is showing only $5821. The Actual expenses for auto #1 is $1777 and the Actual expenses on the Leased auto #2 is $8101 (for a total of $9878). Why is this happening? Are lease payments limited or what is going on? Have I missed something? I would appreciate some feedback. Please inform me! Thank you.

Your lease payments should go on line 20a of schedule C--maybe the difference is on that line.
At least-that's the way my software does it.

Lines 20a and 20b
If you rented or leased vehicles, machi-nery, or equipment, enter on line 20a the business portion of your rental cost. But if you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction by an amount called the inclusion amount. See Leasing a Car in chapter 4 of Pub. 463 to figure this amount.

[DTS]

I'm not sure if depreciation for auto #1 is a factor in your question, but if so, is depreciation for auto #1 on L13? My software will put the lease payment and expenses for both autos on L9 and depreciation for the auto on L13. I'm thinking that might be the difference you're seeing.

[taxjungle]

Leasing Car For Business

Your lease payments should go on line 20a of schedule C--maybe the difference is on that line.
At least-that's the way my software does it.

Thank you Gene V for your quick response. THERE IS WAS!!! (on Ln 20 rents). I REALLY APPRECIATE THIS BOARD!

[taxjungle]

Leasing Car for business

I'm not sure if depreciation for auto #1 is a factor in your question, but if so, is depreciation for auto #1 on L13? My software will put the lease payment and expenses for both autos on L9 and depreciation for the auto on L13. I'm thinking that might be the difference you're seeing.

Thank you DVD. Yes, the depreciation for auto #1 was on Ln 13. So the entire amount for both car expenses totaled up on Ln 9, 13 and 20. Thank you for your feedback.