Take over my lease in Dec or Jan?

[detjason]

Hi,
My vehicle lease ends in January 2023. I intend to buy it out and purchase the vehicle. If I do so one month early this year in December, I know that there will be a tax advantage because I use it 25% for business, but I am wondering if I should wait until January, since I am already deducting my 12 lease payments for 2022. Is it simply just a question of when I might need a bigger write-off, 2022 or 2023?

[myrdale]

Hi,
My vehicle lease ends in January 2023. I intend to buy it out and purchase the vehicle. If I do so one month early this year in December, I know that there will be a tax advantage because I use it 25% for business, but I am wondering if I should wait until January, since I am already deducting my 12 lease payments for 2022. Is it simply just a question of when I might need a bigger write-off, 2022 or 2023?

I don't know.

I understand that contributing to an IRA you can contribute to last year's total up till April of the current year. I don't know if you can do the same thing with claiming expenses. My point being is even if you do everything on schedule, and purchasing it in January can you still claim it.

I am assuming you can not claim the entire purchase in one go and would have to prorate it over 5 years or so. Someone with more tax knowledge than I will have to respond.