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Old 01-26-2007, 01:13 AM
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Treatment of Auto lease expense on Corporate tax return?

Can you please tell me how auto lease expense is treated on the corporate tax return?

The lease payment was made by my C corporation.

TKs..

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Old 01-26-2007, 11:45 AM
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The auto lease expense is deducted as an expense on the corporate tax return, however, per IRS rules there is there is an lease inclusion amount that represents the personal usage of the auto, this portion is not deductible.

If you need a detailed explanation of this the IRS has published a table outlining the lease inclusion amounts.

As such, this becomes an M-1 adjustment reporting purposes, this means that there is no tax deduction of this personal amount.

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