If you're getting ready to file your taxes, you might be wondering if your VW lease will have any effect on your return. If you leased a new vehicle from Patrick Volkswagen last year, this is what you need to know about how you could possibly benefit from a lease on your next return.
The SALT Deduction
SALT stands for state and local taxes. You pay sales tax when you lease a new Volkswagen vehicle, so you may actually be able to make that part of your SALT deduction.
There are some things to keep in mind though. There's a limit on the SALT deduction. Some tax filers are also better off taking a standard deduction instead of itemizing, a requirement of using the SALT deduction. So, your mileage may vary with this deduction, but it is a potential benefit to be aware of.
Writing Off Business Use
If your car is used for your business, you might be able to write off some of the costs of ownership. Usually, you can write off a percentage of your ownership costs. If you use the vehicle for business 50 percent of the time, you can write off 50 percent of your costs on your taxes. Being able to write off the entire lease payment or mileage traveled is a lot rarer.
Which deductions you're able to take or which ones you'll actually benefit from can vary based on your particular situation. Be sure to talk to an accountant and see how you can best take advantage of your lease and vehicle costs on your tax return.
If you have any other questions about leases, new cars, or anything else, visit our Volkswagen dealership serving Worcester, MA!