If you lease a car you use in business, you may not deduct both lease costs and the standard mileage rate. You may either:

• Deduct the standard mileage rate for the business miles driven. If you choose this method, you must use the standard mileage rate method for the entire lease period (including renewals).
• Claim actual expenses, which would include lease payments. If you choose this method, only the business-related portion of the lease payment is deductible.

An income inclusion amount reduces both of these deductions.