Car Tax Cuts
Have you ever wondered what types of tax breaks you are eligible for? Want to learn more? Read on.
On the off chance that you utilize your auto only in your business, you can deduct auto costs, as indicated by the Turbo Tax site. In the event that you utilize your auto for both business and individual purposes, you should separate your costs based on mileage. Auto deductions are for a car, van, and pick-up or board truck utilized for business as indicated by the IRS web site. It is important to be aware that the commute between one's home to work is a personal expense and not deductible.
However, if you drive from your usual work spot to another work related site whether it be a meeting in a different office, the store to buy office supplies or the airport, those are tax deductible miles. However if your employer pays you back for mileage, your miles are not deductible.
If you use your car just for work then you will be able to deduct 100% of your expenses are deductible. This includes parking fees, registration fees, gas, and insurance. It's important to keep your receipts to keep tabs on your expenses.
If you unfortunately happen to be in a car accident and the other driver isn't able to fully reimburse you for the damage done to your car, you might be able to get a deduction for the amount you were reimbursed for as a casualty loss. This includes if the the value of your car goes down as a result of the accident.
Please refer to refer to IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses https://www.irs.gov/uac/car-and-truck-expense-deduction-reminders). For a list of current-year and prior-year mileage rates see "Standard Mileage Rates." There's is also a table included for those who lease their vehicles.