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With a true lease, you can deduct your business-related lease payments in full. If you have financed the asset and will own it in future than, you have to treat it as purchase. In that case, your write-offs take the form of depreciation deductions and interest expense.
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Depreciation and Section 179 Expense Changes for Tax Year 2006
Every year, you can "expense" (write off all at once instead of depreciating), within limits, the cost of business equipment or other eligible personal property you acquire and use in your business. The limit is $105,000 in 2005 ($108K in 2006)...
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