Warren leases an auto valued at $19,750 for his business and personal use on May 1, 2011. His extensive records indicate he used the automobile 85 percent for business and 15 percent for personal use. He starts making monthly lease payments of $235 on June 1, 2011. What are the tax consequences for Warren in years 1 and 2 as a result of this lease contract?

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The Answer of Warren leases an auto valued at $19,750 for his business and personal use on May 1, 2011. His extensive records indicate he used the automobile 85 percent for business and 15 percent for personal use. He starts making monthly lease payments of $235 on June 1, 2011. What are the tax consequences for Warren in years 1 and 2 as a result of this lease contract?

Warren Leases an Auto Valued at $19,750 for His Business