A Toyota lease can offer some tax benefits, but not every driver can take advantage. If you're thinking about leasing a car and hoping to take advantage of some tax write-offs, this is what you need to know before you sign on the dotted line at Hall Toyota Virginia Beach.
Who Can Write Off a Toyota Lease?
Unfortunately, not everyone can write off the cost of their Toyota lease. To take advantage of these tax benefits, you're going to need to be a self-employed person or a business owner who has to use their vehicle for business. If you use your car for work or your business in some capacity, you may be able to write off a portion of your expenses.
Specific Tax Benefits
If you also have the leased car for personal use, then you can only write off the “business portion” of your car's use. This means that you have to figure out the percentage of the time that you use your car for business, so you have to track your mileage. Let's say you drive 15,000 miles in one year. If you drive 12,000 miles for business and 3,000 miles for personal matters, then your business portion is 80%.
Then you can write off expenses in two ways. You can write off actual expenses, which include lease payments, fuel costs, insurance premiums, and other costs associated with your vehicle. You can also opt for the standard mileage deduction, in which you multiply your business mileage by a number given to you by the IRS.
Which method works best for you can depend on several factors, so we recommend talking to a tax professional before you decide which type of write-off to take.
Lease a New Toyota Car Today
If you're interested in leasing a new vehicle, visit our Toyota dealers in Virginia Beach, VA. We'll help you find the perfect Toyota car, truck, or SUV.
