The full amount of a lease payment is tax deductible provided the contract qualifies as a true lease under IRS guidelines.

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The IRS allows for the full amount of payments made under a true lease to be tax deductible as an operating expense. However, if the lease is considered a capital lease or finance lease, only the interest portion of the payments can be deducted. It is important to meet the IRS guidelines for a true lease to ensure the full deduction can be claimed.

The Full Amount of a Lease Payment Is Tax Deductible