Who knew that your VW lease can save you money when tax season rolls around? You heard that correctly, vehicle lease payments can indeed net qualifying drivers write-offs on their yearly taxes!
Let’s take a quick look at what makes drivers eligible for tax write-offs, and how much they can write off each tax season.
Who Is Eligible?
Drivers who are eligible for lease payment write-offs are business owners or self-employed individuals. These drivers can treat their vehicle’s lease payments as another business expense, meaning it is fair game during tax season.
As long as the vehicle is at least used partially for business-related reasons, it can be considered a business vehicle.
How Much Can I Write Off?
This depends entirely on how much the vehicle is used for business versus personal reasons. Drivers looking to accurately track their business-related usage of a vehicle should stay on top of the odometer readings, measuring before and after a business trip.
Add up your business mileage and calculate the percentage of overall business usage. This percentage will be required when filing taxes.
How Do I Write Off My VW Lease?
Drivers can write off lease payments using either actual expenses or mileage. Actual expenses require drivers to track every refuel, service visit, and tow charge and use that to determine the percentage you can write off.
However, if that sounds difficult to track, drivers can also utilize the standard mileage deduction. This option only requires drivers to keep a mileage log, as opposed to a file of all business charges.
Interested in learning more? Well, be sure to reach out to the Patrick Volkswagen finance department for more information. Our team members are ready and waiting to answer any Volkswagen finance questions you may have, so don’t hesitate to reach out today!