If you’ve bought a new car for your business, you may be able to save on your taxes. Find out more about how payments made for Mazda financing can qualify you for a deduction, or talk to our finance team at Joe Myers Mazda to learn more about your unique options.
Can I Take a Deduction?
Most people use their cars for work in some way, but only self-employed people or business owners are eligible for a deduction through their car financing. Your car also must be used at least some of the time for official purposes. If you’re an employee of another company or your car is only driven for personal use, it does not qualify for a deduction.
How Much Can I Deduct?
Your deduction is based on how much you pay as part of your loan and what percentage of the time it is used for a business purpose. If your car is put to personal use half the time and business uses half the time, then you can only deduct half of your loan interest payment. For a $1,200 monthly payment, that makes for a $600 deduction.
What Do I Need to Keep?
As with any aspect of doing your taxes, keeping the proper documents and records is essential. In addition to documentation of your loan and receipts for your loan payments, you’ll need to track your odometer. Keep a log of how many miles you drive for personal or professional purposes, so you know what ratio to apply to your deduction.
Find Out More About MAZDA Financing at Joe Myers MAZDA
Buying a new Mazda vehicle for your business can help you with your taxes as well as give you a flexible, responsive new company car. Come visit Joe Myers Mazda and find out how Mazda financing can expand your company fleet today!
