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For example, a lease payment of $500 per month would give you a tax deduction of $6,000 against corporate income. Whereas interest at 5% on a $40,000 loan is about $2,000 a year.

There's a whole lot more to it than just interest and lease payments. Along with the interest goes depreciation expense. And that is another whole bag-o-worms. Congress keeps mucking around with vehicle depreciation. So some cars have limits on the annual depreciation expense, light trucks have different limits, heavy trucks have a third set of rules, and SUV's have a fourth set of rules.

I'm surprised your agent friends haven't all flocked into purchases of SUV's for driving your homebuyers around in. At the moment, those have become very popular vehicles.

--Peter
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