There are two types of tax benefits associated with leasing.
Sales Tax:
For an expensive vehicle, the state sales tax can be substantial. With a lease, in most states, sales tax can be incorporated into the monthly payment schedule. This provides the car owner with the use of that money over the term of the lease.
Business-Related Deductions:
Many of our clients use their cars for business purposes, and lease their cars in a business name; which need not be a legal corporate entity. A Ferrari, Lamborghini or Rolls Royce, for example, can certainly impress prospects and customers. Leasing in a business name allows you to use pre-tax dollars to make monthly payments.
Always consult with your accountant or financial advisor regarding this type of tax-related decision.
