Originally Posted by fireba11

I know our leases are all tax deductible but does anyone know If I will be able to depreciate the truck after the title is in my name?

Think about this a little.

You are writing off the entire lease payment each month.

After the lease is completed, are there any additional payments?

If not, then you cannot depreciate the truck since you wrote it off by lease payments.

if the truck has any value left , it may have some depreciable value left.

it depends on other factors. it not as cut and dried as that.

and i got that answer from my tax professional, my mother -in-law. nice to have her in the family come tax time

Originally Posted by skateboardman

if the truck has any value left , it may have some depreciable value left.

it depends on other factors. it not as cut and dried as that.

and i got that answer from my tax professional, my mother -in-law. nice to have her in the family come tax time

I am a tax professional since 1982.

It may have a value, but the cost has already been written off.

However, some leases require a final payment which becomes depreciable.

Originally Posted by Roadmedic

I am a tax professional since 1982.

It may have a value, but the cost has already been written off.

However, some leases require a final payment which becomes depreciable.

it isnt cut and dried as that many other factors go in, such as residual value. what you says applies in some cases but not across the board.

i havent been audited , so i will stick with my tax pro. she hasnt steered me wrong yet.

Originally Posted by skateboardman

it isnt cut and dried as that many other factors go in, such as residual value. what you says applies in some cases but not across the board.

i havent been audited , so i will stick with my tax pro. she hasnt steered me wrong yet.

No arguements.

I am an Enrolled Agent to Practice Before the IRS and only offer proper advice. Have been since 1985.

Each situation has to be reviewed.

Originally Posted by skateboardman

it isnt cut and dried as that many other factors go in, such as residual value. what you says applies in some cases but not across the board.

i havent been audited , so i will stick with my tax pro. she hasnt steered me wrong yet.

I dont see how it isn't cut and dry on a capital lease with zero balloon at the end. If you spend 70k in lease payments on a truck, and that truck was leased at or above fair market, you not only took all the deduction via lease payment deductions, you would have to recapture the entire sale price if you sell the truck.

I am not an accountant and am simply trying to learn something. Can you cite a specific example that would be an exception to this scenario?

Originally Posted by Roadmedic

No arguements.

I am an Enrolled Agent to Practice Before the IRS and only offer proper advice. Have been since 1985.

Each situation has to be reviewed.

Roadmedic, could someone who had a lease, such as one of these Lone Mountain leases, choose to depreciate the asset using the sum of payments as a basis, rather than deducting the lease payments in full? Is there a choice in that or must it be deducted strictly as a lease?

Originally Posted by flight379

Roadmedic, could someone who had a lease, such as one of these Lone Mountain leases, choose to depreciate the asset using the sum of payments as a basis, rather than deducting the lease payments in full? Is there a choice in that or must it be deducted strictly as a lease?

It depends on the wording of the lease and the terms.