Vehicles — Business Use
$7.97
Learn about the tax rules for deducting vehicle expenses when using your car or truck for business purposes. This guide covers the two methods available for calculating vehicle expenses—standard mileage rate and actual expenses. It provides essential information on eligibility, recordkeeping, and the types of expenses that can be deducted, making it a valuable resource for self-employed individuals and businesses.
Highlights:
• Standard Mileage Rate: Offers a simplified way to calculate vehicle expenses by multiplying business miles driven by the standard rate per mile.
• Actual Expense Method: Allows deduction of specific costs such as fuel, maintenance, insurance, and depreciation.
• Eligibility Requirements: Outlines who can use these methods and the conditions under which they apply.
• Recordkeeping: Emphasizes the importance of maintaining detailed records of mileage and expenses to substantiate deductions.
• Limitations: Briefly discusses situations where certain methods cannot be used, such as using five or more vehicles simultaneously for business.
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