Considering an Alfa Romeo lease for your business? Wondering if you can use it as a tax write-off? We’re diving into all the details at Helfman Alfa Romeo of Sugar Land.
Why Lease a Vehicle?
Wondering why you should even lease a vehicle at all? There are lots of perks to leasing, such as:
- Leasing is more affordable than buying.
- Leases are typically covered under warranty throughout your term, helping limit repair costs.
- Leases are newer models, so they often have advanced safety features and technology.
- You can avoid the hassle of trying to sell the vehicle down the road.
Can You Write it Off?
Yes, a car lease is an eligible tax deduction for any business owner or people that are self-employed that use their vehicle for work.
Keep in mind, it’s important to determine how much of your business is used for personal use and how much for work. If only half the time you drive it you drive it for work, then only half of its cost is deductible.
There are two ways that you can write off your lease – using actual expenses or by mileage. Your expenses include not just your lease payment, but also fuel costs, auto insurance, maintenance expenses, etc. You can also write-off your sales tax.
If you plan to write off your mileage, make sure that you track it throughout the year in a mileage log. There is a predetermined mileage rate that you’ll multiply by your mileage to calculate your mileage deduction. If you do a lot of driving, this may be the better option for you.
Still have questions? We encourage you to stop by our Alfa Romeo dealership in Houston, TX and chat with our financial experts. We’re happy to answer any questions you may have!
Leave a Reply