Is it better to use standard deduction on new lease vehicles or the itemized deduction?

Hello Crgroadrebel88!

Thank you for your question(s). Since 2022 will be your first year to be using your leased vehicles for business, you have the option of calculating the cost of using your vehicle using either the Actual Expenses method, or the Standard Mileage method.  Each method has its advantages and disadvantages. Actual Expenses may provide you with a higher tax deduction one year, and the Standard Mileage may produce a larger deduction the following year. 

If you would like to use the standard mileage method, you must do so in the first year of operating your business (2022). Going forward, you have the option of switching back and forth between the two methods. You may want to calculate your expenses using both methods and then use the one that produces the larger deduction which will give you a greater tax benefit. 

Please refer to the two articles below which include examples:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getting-the-biggest-tax-deduction/L0wIEUYhh 

https://www.thebalancesmb.com/standard-mileage-rate-vs-actual-expenses-2125242 

Please let me know if this answers your questions, or if I can be of further assistance.

Thank you!

Shirleyh88