On March 1, 2022, Sarah entered into a three-year lease of an automobile used exclusively in her

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On March 1, 2022, Sarah entered into a three-year lease of an automobile used exclusively in her business. The automobile’s FMV was $58,500 at the inception of the lease. Sarah made ten monthly lease payments of $600 each during 2022. Is Sarah able to avoid the luxury automobile restrictions on depreciation by leasing instead of purchasing the automobile? Explain.

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Pearsons Federal Taxation 2023 Comprehensive

ISBN: 9780137840656

36th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse

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