Legal Question in Tax Law in Illinois

Re: Personal car leasing

AS you apparently suspect, leasing the car is the better non-tax answer. But be sure to maintain appropriate insurance.

If your son has the legal obligation to pay for the lease, and the operating expenses, he can deduct the costs of operating the car to the extent it is used for business, and to the extent he meets the recordkeeping requirements, etc. for the auto expense deduction. He should consult with a CPA or tax attorney, and you should, too, if you want to confirm your tax consequences to both parties, and obtain a valid auto lease.

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