A simple Answer TO yOUr Question
What is the difference between deducting a car loan vs. a lease payment?
With a loan, you deduct depreciation and interest, not the payment itself. With a lease, you deduct the actual lease payment. The timing and amount of the deductions differ: loan deductions are front-loaded through Section 179/bonus depreciation, while lease deductions are spread evenly over the lease term. Both methods can be effective depending on your tax situation.
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The Smart Buyer's Guide to Leasing vs. Buying in 2026
Discover:
✓ When to lease vs. buy
✓ Hidden fees to watch for
✓ Tax benefits for business owners
✓ Current manufacturer incentives
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