Tax Benefits of Leasing a BMW Car

One of the biggest choices drivers make when deciding to drive off the lot of BMW of Wesley Chapel in a new BMW car is whether to lease or buy. There are arguments to be made for each decision, but one of the unheralded benefits of leasing is the fact that certain lessees are eligible for a tax deduction when leasing.

Here is an overview of the tax benefits of taking out a BMW lease, presented by the professionals at our BMW finance center.

Deducting Sales Tax on a BMW Lease

If you pay sales tax on a BMW lease, you may be able to take a deduction for it on your federal income tax forms. The SALT deduction has been around for a while, and it allows certain taxpayers to deduct state and local taxes, such as property tax, income tax, or sales tax.

Put simply, you have the choice of deducting state, local, and foreign property tax, in addition to income tax or sales, or taking the standard deduction in lieu of any qualifying SALT deductions. To determine what is advantageous for you, we recommend seeking the advice of a tax professional or speaking to a finance pro at our Wesley Chapel, FL BMW dealership.

Car Leasing as a Business Owner

If you intend to use your leased BMW car as part of your business, you may be able to deduct some or all of the vehicle’s operating costs. How much you can deduct depends on how much of the vehicle’s use is for business purposes and how you deduct your business expenses. Again, reach out to a tax professional for more detailed information.