One of the main benefits of a Mazda lease is lower monthly payments—at the end of the lease term, you can return the vehicle rather than deal with the hassle of selling. For businesses and business owners, there are additional tax benefits to leasing a Mazda car. Here’s what you need to know.
Standard Mileage Rate Deduction
There are two available Mazda lease tax benefits: standard mileage rate deduction and expense deduction.
If you choose to use the standard mileage rate deduction, you can claim miles driven for your business on your taxes. The IRS announces the standard mileage rate used to calculate the deductible cost of operating a car for business purposes every year. This year, the standard mileage rate is 58.5 cents per mile.
We recommend keeping a mileage log to keep track of how far you drive your Mazda car for business. This tax deduction does not apply to your personal commute time. This option is best for those who drive very often for business purposes.
Deducting Expenses
You also have the option to deduct any expenses that arise from your leased Mazda vehicle. A list of expenses that qualify includes:
- Lease payment: This can include partial or complete lease payment. The price reflects the time the vehicle is used exclusively for business.
- Fuel
- Mazda service
- Tolls and Parking
- Registration and document fees
- Insurance
Make sure to keep all receipts related to your business so you can bring them to your tax professional. This tax deduction is best for individuals who drive a typical amount and would prefer to apply their tax benefits toward vehicle upkeep and everyday costs.
Still, have questions about the tax benefits of your Mazda lease? Give us a call or pay us a visit at Sansone Mazda. We’re happy to help!
Connect with us
