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Are there Better Tax Benefits of Leasing a Car or Buying One?
The tax benefits of leasing a car are not better than those of buying one. If you use the vehicle for business purposes, the cost of leasing the vehicle is considered a business expense, and the reoccurring leasing charges are deductible. If you purchase a new vehicle, the cost of maintenance, fuel, and depreciation are business deductions, and those would garner you a larger deductible. The sales tax and fees paid on the purchase are also deductible. If you are not using the vehicle for business purposes, but rather for personal use, there are tax credits for qualifying vehicles and sales tax credits available. However, leased and rental vehicles do not qualify.
