Leasing a Buick car has a number of benefits, with a number of them being financial in nature. You may already know that most Buick leases come with lower monthly payments, but an underrated benefit of taking out a lease is related to the tax implications. Car leases and taxes can be a tricky subject, but our Buick finance experts here at Peruzzi Buick GMC are happy to walk you through the advantages.
Car Leases and Sales Tax
Here in Pennsylvania, you will have to pay sales tax when you buy or lease a Buick SUV. This is true whether you pay in cash, take out a loan, or begin a lease. When you purchase a car, you will be paying a six percent state sales tax, plus any local tax that applies to you.
However, when taking out a lease, the tax is based on the monthly lease payment. Pennsylvania charges a three percent motor vehicle lease tax in addition to the six percent sales tax on the lease payments. At the end of the day, the total amount in sales tax that you pay on a leased vehicle is often less than the sales tax on a car purchase.
Writing Off a Car Lease
Another tax benefit of leasing applies if you use the leased vehicle for your business. The IRS includes car leases on its list of eligible vehicle tax deductions, so if you’re self-employed and use your Buick car for your business your lease payments can be written off.
Of course, there are stipulations as to how much of the lease can be written off, so it’s advisable to consult a tax professional if you take this route.
Begin Your Buick Lease Today
Here at Peruzzi Buick GMC, we have a wide selection of new Buick models for lease. Stop by our dealership today for a test drive.
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