When it comes time for your next Mazda lease, look no further than Scott Mazda. Our expert team will work one-on-one with your driving and budget needs to match you with a suitable model for whatever the road ahead might hold. And if you’re looking for information on the logistics of leasing, like required credit scores or how to write off your lease payments, you can schedule an appointment with our expert financing team today.
Who is Eligible for Tax Deductions?
Small business owners know that there are many different types of tax deductions. Your monthly lease payments may be included in such a deduction. To qualify, drivers must either be self-employed or business owners. If you receive W-2 forms from a client or employer, you are no longer eligible to write off driving costs, like vehicle payments, insurance, or fuel.
Best Practices for Deducting Vehicle Costs
While you may be eligible for tax deductions on your lease, you want to ensure you report the use correctly. For instance, the cost of commuting to work is not considered deductible. To be deductible, the driving must be considered “business use.” If you only drive your vehicle for work, this is easy. It can also be a little more complicated if you drive your car for personal use.
The best way to calculate the deduction is by tracking your miles in a log. At the end of the year, calculate how much vehicle use was for business and how much was personal, and then apply that same percentage to the monthly loan cost.
You may also decide to follow a standard mileage deduction instead. In this case, you will be reimbursed for driving miles, but your monthly payments will not be deductible.
While much of this is best discussed with your tax professional, when it comes to Mazda financing, the best place to explore your options is our Mazda dealership in Allentown. Stop by to find the best Mazda car for your business needs today.
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