Can I Deduct Depreciation on a Lease-to-Own Semi Truck?

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

 

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.

 

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.

 

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?

 

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.

 

I'm just thinking that depreciation would give you more flexibility. You could accelerate via section 179 if needed.