The Case of Misinformation
A partner in a downtown law firm was about to lease a car because he was told that all taxpayers can deduct $800 per month of car lease payments on their tax returns. Wisely, he called Scarrow Yurman & Co .
We explained that the advice was incorrect. Deductions for a car lease can only be made if the vehicle is used for business purposes and then only by the percentage of business use versus personal use. Also, leased vehicles that have a MSRP of more than $40,000 often result in a lower deductible lease amount than expected.
With all the facts the client was saved from making a decision based on misinformation.