The deadline for taxes – April 15 – is about a month away. And companies that have leased vehicles for their business needs – a popular move since many dealerships, banks and credit unions don’t offer financing to businesses – are seeing the benefits during recent number-crunching to meet that deadline.
With leased business vehicles, owners can deduct the expenses of the lease and the operating expenses based on the percentage of business use. For example, if your yearly lease payment is $4,200 ($350 per month) and your business use percentage is 80%, you can deduct a whopping $3,360 on your tax return for that year.
The IRS allows such in two ways:
Using the standard mileage rate. The former rate is said to be the preferred, easier method, especially if you do relatively little business driving. First, find out if you qualify. Then you can calculate the fixed and operating costs of your vehicle by multiplying the number of business miles traveled during the year by the business standard mileage rate. This rate is set annually by the IRS. For 2013, the rate was 56.5 cents per mile, and in 2014 that rate is 56 cents per mile.
Using the actual expenses method. Your deductions are heavily dependent on the records you have in order to calculate those deductions, including gas, oil, tires, insurance, etc. Although this method is more thorough, you may qualify for a larger deduction.
Keep in mind that the tax you pay on the monthly payment is deductible as well.
Assuming a business lease on Swapalease.com will not only grant you these tax benefits, but will also leave necessary cash that would be spent on a purchase. Simply visit the online car lease marketplace and begin looking for a vehicle that fits your business needs.
For more information on car leasing for business purposes or to learn how you can have a successful car lease trade, contact Swapalease.com at 866-SWAPNOW.