Vehicle Deductions: All You Need to Know!

[KarenL]

Do you want to drive away with massive vehicle tax deductions? Before you race to the tax-filing finish line, there are things you need to know to ensure that tax win! While vehicle deductions can be huge, there’s a great responsibility to thoroughly document the date, business purpose and mileage. And that’s just to get you to the starting line. 

Once you’re in the race, you have a choice on which route you want to take with your business vehicle expenses  - the Standard Mileage Rate or Actual Expense Method. 

It’s important to note that ALL business vehicle deductions (Standard Mileage or Actual Expenses) begin with tracking that mileage. It’s also a highly audited tax move - so clear records (in written form) are key to proving you’re entitled to that deduction.

Let’s get up to speed with some fantastic Help Articles and FAQs.

Can I deduct mileage? - Basic info to get you started.
Business Use of Vehicles - This is a great overview that’s more than just an overview! 
Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction - More of the above and some Pros/Cons of each!
Driving Down Taxes: Auto-Related Tax Deductions - Here’s some outsider perspectives!
Can I switch between the standard mileage rate and actual expense method? - Good question! Yes you can, but…
Is Mileage Reimbursement Taxable Income? - Oh - did this thought even cross your mind?!


BONUS: If you like the idea of electric vehicles, and are in the market for a new car, check this out: What is a clean vehicle tax credit?  There’s an extra link at the end to the IRS site with info for special business clean vehicle credits.

If you need specific tax advice or have questions that aren't answered in the links above, please ask in our Taxes forum that best fits your needs!