If you’re looking to lower your tax bill or increase your tax refund, can your Jeep® lease help? There are actually some potential tax benefits that you may be able to take advantage of when you lease at I.G. Burton Chrysler Dodge Jeep® RAM of Milford. This is what Delaware drivers need to know.
In many states, drivers can take a SALT, or state or local tax deduction. Essentially, this can allow someone to deduct things like sales tax or income tax paid to their state or city on their tax return. Sometimes drivers can include sales tax paid on a vehicle in their SALT deduction.
However, a problem arises if you’ve leased your vehicle at a Delaware dealership. This state doesn’t charge sales tax on vehicles! That means that you’ll often pay less for your vehicle, but there’s no tax benefit to be taken advantage of.
There is one tax benefit that Delaware drivers can take advantage of though. If you use your Jeep or RAM vehicle for work, you can sometimes write off a certain percentage of your ownership costs. For example, if you use your truck for work half the time, you can deduct 50 percent of your vehicle costs, which can include parts of your lease payment, maintenance costs, and fuel expenses.
This can be tricky and sometimes there are other calculations to make. Some drivers are also better off taking a standard mileage deduction. An accountant can help you figure out which works best for you.
If you want to learn more about our latest truck and SUV lease offers, visit our Jeep dealership in Milford, DE. We look forward to assisting you!