What are the advantages of a Kia lease? For starters, you can drive a new car every three years and take advantage of the latest automobile technology. Unbeknownst to most motorists, there are also tax benefits when you lease a vehicle.
Lease Payment Deductions
The IRS allows you to deduct your lease payments in full if you use your car for business purposes. If you also use the vehicle for personal use, then deductions may be less. It depends on the ratio of business to personal use of your vehicle. Deductions, however, may not be possible if the lease contract is a lease-to-own agreement.
If you own a business as a sole proprietor, you can deduct mileage expenses. You can deduct using either the standard mileage rate or go off of the actual ownership expense.
Qualify for a Section 179 Deduction
The Section 179 Deduction allows you to deduct expenses that you use for your business. Under this section, you essentially take a deduction by treating the leased vehicle as a business asset. Speak with your accountant to inquire whether you qualify for this deduction.
Buying Vs Leasing Tax Benefits
Leasing has its tax benefits, but so does buying a car. If you purchase a car, you may qualify for a depreciation deduction. If you’re in search for a new car and plan to use the vehicle at least some of the time for business, then speak with a tax professional. A consultant can determine whether leasing or purchasing is better for your specific scenario.
Visit Folsom Lake Kia to see models like the Kia K5 and more. We have these models for purchase and lease.