Set up a car lease in QuickBooks online

Thank you for reaching out to QuickBooks Community, Rose.

Let me share how to set up a car lease using QuickBooks Online (QBO).

Leases can be tricky because you need to check if the agreement is a lease or a conditional sale contract.

Here's how:

1. If you're sure that the lease or rent is a traditional lease.

2. Create a Lease Expense account and debit it for payments.

3. If your lease is a conditional sale contract, you should talk to your accountant. 

4. The IRS says that payments made under a conditional sales contract are not tax-deductible as rent expenses. With the advisement of your CPA, you should decide if you want to show this as an expense on your books.

5. You can find another resource in Chapter 4 of the book IRS Publication 535: Business Expenses.

In addition, I'm adding this helpful article learn how to reconcile your accounts so they always match your bank and credit card statements and course of running and growing your business, you may need to get a loan to buy new assets: 

• Record the loan for an asset in QuickBooks Online

• Reconcile an account in QuickBooks Online

Please feel free, to if you have another query on setting up a car lease in QuickBooks Online. I'll be here to answer you.