I am a fellow who is planning on leasing or buying a car. Can I deduct lease payments during fellowship (travel to several clinics at different sites)? What percentage of lease payment are deductable? What are the disadvantages to leasing? Thanks for your help.

Zip Code: 32608

We actually just wrote about this exact topic in last month's newsletter. Check out the article at: http://www.mdtaxes.com/news0907.html#2.

Let us know what questions you still have after reading through this article.

And remember, you can sign up to receive this e-newsletter each month at www.mdtaxes.com

Zip Code: 01801

One other thought on buying versus leasing: If you drive a lot of miles and usually to take good care of your car, buying may be the better way to go.

Most leases have annual mileage limits in the 12-15,000 mile range and will charge you more for mileage above these limits. I take very good care of my vehicles and I general don't buy a new one until they are between 150-200,000 miles. Leasing would almost certainly substantially more expensive for me.

So I agree with the article's conclusion - it depends.

Zip Code: 43232