Operating your automobile is a considerable expense when you consider your car payments, insurance, gas, maintenance and more. It can make a substantial dent in your regular budget certainly. The good thing that if you’re self-employed, you may be able to write off a few of these expenses if you use your car for business purposes too.
What can I deduct on my fees? There are exceptions on what you can write off on your fees in regards to your car, so we’ll go over what you can and cannot deduct. You can not deductible mileage for personal use of your vehicle and regular daily commuting. You’ll need to separate your deductible business mileage from your non-deductible mileage, so first calculate how many miles you drove for business purposes for the whole tax year. Then figure out what that is really as a percentage of all the miles put on your vehicle. For example, if you put 15,000 is on your vehicle and 7,500 were for business purposes, 50 percent of those also are deductible then.
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Then decide if you’ll use the Standard IRS Mileage Rate which is 58 cents for business purposes for the 2019 tax year or deduct actual expenses. Actual expenditures include interest on car finance, registration fees, rent and rental obligations, insurance, gas, repairs, regular maintenance, personal property fees, and depreciation. … Read more