Lease contract

pellgrn

Expert Expediter
Who pays the tax,the leasee or the leaser? and why is it you can only claim miles with cargo vans is it cause they don't log or there under a certain weight [10,000] pounds.That's in advance for your input you've always been right on with info.
 

Fkatz

Veteran Expediter
Charter Member
Hi Pelle,

Sorry for the delay in getting back to you, but I have been busy with tax returns.
In Answer to your questions!

1. Who pays the tax,the leasee or the leaser?

It would basically depend on how the lease is written, In any normal lease you would pay the taxes each month included with your payments.
But, if he is leasing the vehicle and subleasing to you then he wants you to pickup the full payment that he is paying including the tax.
He would normally have to request permission from the leasing company before he can sublease to you, because in a standard lease sub leasing is not allowed without permission.
You can go to [http://www.wdfi.org/ymm/brochures/financing/motor_vehicle_leases.htm]


2. Why is it you can only claim miles with cargo vans is it cause they don't log or there under a certain weight <10,000> pounds?

The answer to this is that it is not true. you may use either the standard mileage or Actual Expense Deduction. Normally the mileage deduction comes out better than the other. see IRS ruling pertaining to this in IRS Publication 334 Small business, Chapter 8 page 37, and Pub 463, Chapter 4, page 15 online at [http://www.irs.gov/formspubs/lists/0,,id=97819,00.htm]

Frank
 
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