Signing up for a Jeep® lease for your company provides several tax benefits. Learn about the advantages of a Jeep business lease, courtesy of Hall Chrysler Dodge Jeep RAM Virginia Beach.
Writing Off a Car Lease
When you lease a vehicle for business purposes, you are eligible for a tax deduction. There are two routes you can go when writing off your lease:
Mileage Rate
You can calculate the standard mileage deduction using the rate released by the IRS. This method involves multiplying your yearly business mileage by the rate to determine your deduction. This is the better option if you drive a lot for work.
Lease Expenses
Just as with a business vehicle you own, you can write off expenses like gas, maintenance, monthly lease payments, and insurance costs. You can write them off partly or fully on your tax report, depending on what percentage of your vehicle usage is business-related.
Writing Off Sales Tax
In addition to your monthly payments, you can also write off the initial sales tax in the tax year that you lease a vehicle. This is counted as a business expense and can be written off on your Schedule C form.
PHEV Benefits
If you are leasing a Jeep PHEV 4xe vehicle, you may qualify for certain federal and state tax credits. The state of Virginia currently offers a Plug-In Electric Drive Vehicle Credit for qualifying Jeep PHEV leases.
Explore Jeep® Lease Options in Virginia Beach, VA
There are plenty of tax benefits available when you apply for a Jeep lease; our dealership can help you learn more. Contact Hall Chrysler Dodge Jeep RAM Virginia Beach to get pre-approved for a lease or explore other tax benefits.