Depreciation for Leased Vehicle purchased at end of lease term

[GTS1101]

I have a new client who has been writing off her actual expenses including her lease payments from 2008 through 2011. I am working on her 2011 taxes as she is behind and in 2011 she purchased the vehicle at the end of the lease term. Can she now depreciate the vehicle since she now owns it and no longer leases it? Would the basis be the purchase price at the end of the lease term? Would I depreciate for five years? or only 2 years since the lease payment covered the deprecation portion for the first 3 years?

Thanks!
GTS1101

[Bees Knees]

Assuming the purchase price is the fair market value of the vehicle at the end of the lease term and none of the prior lease payments are applied towards the purchase price, then the purchase is treated the same as any other purchase. Claim actual expenses and depreciate the purchase price over 5 years, or elect to use the standard mileage rate.