When you sign up for a Lexus lease, you agree to pay monthly for the right to drive that vehicle under specific rules and restraints. However, depending on a few criteria, you may be able to write off your lease payments come tax season. Here at Lexus of Valencia, we want to make sure that you know the facts when you sign up for a lease, so read on to learn the criteria for being able to write off Lexus lease payments.
Can I Write Off Lexus Lease Payments?
To write off Lexus lease payments, you need to prove that your new Lexus vehicle will spend most of its time with you as a work vehicle. That means that more than 50% of the time you are driving, you are doing it solely for business needs.
That doesn’t mean the vehicle can’t be used for non-business needs. If you occasionally need to use the car to get groceries, pick your kids up from school, or drive to your favorite restaurant, you can still write off lease payments.
Also, the write-offs may not stop there! Ensure you keep the receipts for gas, insurance, oil, repairs, road tolls, and parking fees. These expenses can be written off if your vehicle is a work vehicle.
If you own a business and you supply company vehicles to your employees, make sure you tell them to keep track of all of these things so that the business can write them off at the end of the year. Also, make sure you are leasing suitable vehicles!
As with any other business or tax decision, writing off expenses of any kind should be discussed with your accountant. However, when it comes to commercial leasing and financing, you should visit Lexus of Valencia to find the right cars to lease for your business.