Even though Tax Day is still months away, you never want to wait until the last minute to get ready. In addition to potentially making costly mistakes, this could mean that you miss out on deductions you’re eligible for.
If, for example, you have a Ford lease you’ve been using for your business, you can write off most – or even all – of these expenses.
Getting the Most Tax Benefits from Your Car
How do you use your vehicle? That’s the first question to answer when it comes to writing anything off. If you just use it to commute to work, unfortunately this doesn’t count as a business expense.
However, if your job, for example, is a ride share driver or somebody who makes deliveries, that does count. If the car is used exclusively for these things, you can write off the lease payments, as well as costs related to gas, maintenance, and insurance.
What Happens if the Car is Used for Both Business and Personal Reasons?
It’s not as easy to calculate your write-off expenses when you use your car for everything. The best way to do this is to keep a mileage log. Every mile you drive for business purposes can be written off.
You can also deduct a certain percentage of your lease payments. Let’s say when you add up your miles you discover that you used your car as part of your business 70 percent of the time. You’ll be able to deduct 70 percent of your lease payment.
If you have any questions about leasing and taxes, get in touch with the team at Helfman Ford.
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