Tax Benefit of Buying or Leasing a Car

Have you been waiting around for the perfect time to purchase your next vehicle but keep coming up with excuses to talk yourself out of taking the plunge?

This is the sign you’ve been waiting for. Quirk Chevrolet Of Bangor has compiled some compelling financial reasons why you should buy or lease your next vehicle before the year is out.

SALES TAX BREAK

If you itemize deductions on your state income taxes, you could be entitled to a significant tax break if you purchase a vehicle from Quirk Chevrolet Cadillac of Bangor by the end of December. The IRS allows you to deduct the total value of all sales tax you pay for all purchases, which means you can include the sizeable amount of sales tax you paid on your new vehicle. To capitalize on this tax savings opportunity, you simply need to provide a receipt to deduct the sales tax cost and score a massive refund.

DEDUCT MILEAGE

If you’re looking to lease or buy a vehicle while simultaneously hoping to net some big savings on your next tax return, declaring your mileage for qualified trips is a great way to meet both ends. You are permitted to deduct mileage on your vehicle for business trips, charitable endeavors, moving, and medical appointments. While you can’t deduct your car payment or mileage driven in your vehicle for personal reasons, the IRS’s mileage deductions are a great reason to purchase a new ride before the end of the year.

BUSINESS EXPENSES

If you’re a business owner looking for a new vehicle to meet your customers’ needs, the tax breaks are too great to miss out on before the end of the year. Business owners can deduct the actual cost of owning a new vehicle, including insurance, gas, maintenance, registration, and depreciation costs. Depreciation expenses can net you serious savings, especially in the first year, as you’re able to deduct thousands of dollars depending on the price of the vehicle.