There are many reasons to consider a Mercedes-Benz lease when it comes time for your next business vehicle. If you’re using a car for business purposes, you can actually write off some or all of the costs on your yearly taxes. Our team here at Mercedes-Benz of Orland Park will answer your pressing questions about lease write-offs and how they work.
Who Can Write Off Lease Payments?
While lease payments can be written off on your taxes, you want to make sure that you’re eligible before moving forward. The tax codes have changed in the past, which means that individuals who receive W-2 forms can no longer claim lease payments as a write-off.
However, business owners or drivers who are self-employed are eligible for tax deductions if and when they use the vehicle for business purposes.
How Do I Write Off Payments?
There are two main ways to write off the lease cost on your taxes. For both methods, however, it’s important to remember that only “business use” driving can be written off. You also want to keep a comprehensive log of your miles driven in order to benefit from write-offs.
One of the methods is simply a mileage reimbursement. When you follow this practice, you will be reimbursed for business miles driven, but you will not be able to write off your monthly payments. The other option is to track your miles and then take the percentage of driving you do for business and apply that percentage to the monthly lease costs, which will then be written off.
Here at Mercedes-Benz of Orland Park, we carry vehicles that will help you to take your business to the next level and we offer the Mercedes-Benz financing support that makes the difference. Learn more about leasing and Mercedes-Benz financing at our dealership today.
AdChoices