Your best friend, Mitch, was at a sales conference recently. During one of the breaks, he entered into a conversation with one of the other attendees, Darly, regarding the perks provided by their respective employers. In both cases, the employer provides a car. However, Darly commented on the significant tax advantage available to her since her employer leased the car instead of buying the car. Mitch was able to obtain all of the information from Darly regarding her car.

Mitch has come to you for some "free" tax advice. He has asked you to compare the tax position he is in currently with the employer$-$owned car to the position that Darly is in with the leased car.

Mitch