Car payments/lease payments deductible?

[jclark304]

Are car payments/lease payments deductible on your income tax as a business expense? 55 to 75% of the miles I put on my car are for business. I work for a small company, who requires that I drive to meet customers. I live and work in Alabama.

If the payments are deductible, can I still get paid for mileage? Thanks ahead of time for your help.

 

[loku]

car expense

If your reimbursements for mileage are under a nonaccountable plan of your employer’s (ask your employer if the plan is accountable or not), the employer will include the reimbursements as part of your wages on your W2, and you can deduct the proportion of total car expense that equals the proportion of its business use; therefore, if 75% of the miles are business miles, you can deduct 75% of the expense.

If the reimbursements are under an accountable plan, your employer will not show the reimbursement as income to you, and you may not deduct the expense.