Leasing an exotic car offers the distinct advantage of allowing the full cost of the lease payments to be written off as a business expense at the end of each calendar year no matter the vehicle's weight.
For a $1,200 monthly lease, this translates to an annual deduction of $14,400, offering a distinct tax advantage over purchasing, especially when considering the IRS's depreciation limits on luxury vehicles.
The IRS caps first-year depreciation deductions for luxury vehicles at $20,200 (with bonus depreciation) or $12,200 (without), for vehicles weighing 6,000 pounds or less. This cap does not apply to leased vehicles, where the full lease payment is deductible.
This means leasing not only bypasses depreciation limits but also allows for full deduction of lease payments, making it a more tax-efficient option for those looking to drive luxury vehicles without compromising on tax benefits.
