How to figure interest paid on lease to own?

Doing husbands taxes. He is a OTR O/O leasing his truck. I was told for tax purposes that I can deduct the interest paid on the truck. Need to know how to figure it.

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Feb 16, 2013
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Taxes NEW
by: Anonymous

You may claim interest paid out to the leasing company for his truck. You may also claim the depreciation of the truck. You may also claim the miles used while in service, as well as fuel, parking fees, tolls and any parking tickets received while in transit etc..etc. You must choose which way you would like to go. However, the forms needed to do any of this, takes a certified tax preparer to accomplish the best tax write off. Trying to do all of this on your own is more than likely not to be most beneficial to your husbands business because the forms are complicated tax forms.

At this point, if you do not know how to find out how to compute interest you paid out to the leasing company, chances are you will not understand how to compute the rest of the schedules you need to file, schedule C, and self employment tax forms etc....

Trying to prepare tax forms without prior knowledge can run the risk of producing red flags in the system those red flags will definitely cause an audit of the tax forms, and could cost you more money in the long run as the IRS charges interest against any owed tax retroactive.

My suggestion is to not attempt this on your own.
It can be the death of your business. Independent contractors are treated at the same level as a business owner. This means you reap the same write offs as does a business owner, and there are many! To ensure that you get them all, a tax preparer is needed.

I hope some of this information helps and good luck on your taxes. :)

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