I thought the deduction was $2000 for tax year 2001, $1500 for tax year 2002, $1000 for tax year 2003, and $500 for tax year 2004; but can be taken only once. Ie, buy the vehicle in 2002, get $1500 deduction. Buy it in 2005 (ie, when the 3 year lease is up) and get nothing.
----- Original Message ----- From: "Adam Kuehn" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Saturday, October 12, 2002 2:30 PM Subject: Re: EVLN(Prius leasing in TX) > >Total cost to buy the car after 3 years is $23500. > >Total cost for a 3 year $21k loan at 6% is $23000, > >for a P&I of $639. Better rates (such as 5% are > >available, and other terms, such as 5 year). > >If you lose the $2000 tax deduction at 28% tax level > >is $560. So the lease program will on the surface > >cost you approximately $1k more for the same car, > >but allow you to get out of the car easily after 3 years > >if better technology comes along, etc. > > I believe the tax deduction would be available at the time the buyout > provision kicks in. At that point it would still be an OEM vehicle > at its first transfer of title. I would assume, though, that the > deduction would only apply to the residual purchase price. Of > course, that assumes that the tax-favorable treatment is still around > when the buyout happens, but you'll need to discuss that with your > local legislator. > > Naturally, I also may be entirely mistaken, as I have not read the > specific provision in quite awhile. > > -Adam >
