Mazda financing offers benefits to car owners as individuals and business owners. Understanding how this works helps save money. Explore some of the tax benefits of auto financing below and remember that Green Mazda is here to answer your questions.
Tax Deductions for Business Vehicles
One tax benefit you may be able to take advantage of is the deduction the Internal Revenue Service allows for business use of a vehicle.
The IRS offers two options for deducting associated expenses. First, the standard mileage rate deduction lets you claim miles driven for your business on your federal taxes. The second option is for the deduction of actual expenses.
You can swap from standard to actual expense yearly for a purchased vehicle; however, you must stay with what you first pick when leasing. State and local sales tax and lease payments offer additional opportunities for deductions.
If you’re self-employed, you can deduct interest on auto loans from your taxes. You must record every business trip, odometer reading, and car loan payment to verify the amount of interest you pay. Like other deductions, car loan interest can only be included if you opt for an actual expense deduction.
Sales Tax Benefits of Refinancing
Sales tax is usually not assessed when an automobile is refinanced. Refinancing involves taking out a new loan against the car and paying off your previous loan with the money from the new loan. When a borrower refinances their auto loan, they are typically changing lenders.
Refinancing also allows you to perform other actions, such as adding or deleting a co-borrower.
Ask About MAZDA Financing Benefits at Green MAZDA
Your trusted Mazda dealership in Springfield, IL is here to answer your questions about auto financing and leasing. Get in touch with Green Mazda today to find out more!
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