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[[<< I would advise against leasing or purchasing a car solely for a tax writeoff as the treatment of
automobiles is not as favorable as other capital items. >>

For purchasing, I agree. For leasing, though, this is not the case unless you buy at the end of the
lease period.]]

I would tend to agree. Remember that leases are ALSO limited. You don't necessarily get to write off 100% of the lease payments, depending upon the cap price of the vehicle. There are rules that require the limiting of the lease payment. And while this limitation is not substantial in nature (in many cases at least), be aware that there IS a limitation. That limitation was put in to put the limitation on depreciation and leases on more of a level playing field.

Additionally, leases will not provide you with a large "up front" deduction...which it seems is what this reader was looking for.

That being said, I would tend to agree that the purchase of other assets with the Sec 179 expensing election would be much better than an auto acquisition...either lease or purchase...if an up fron deduction is what is desired.

TMF Taxes
Roy

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