Tax Refund

[uzonduisrael]

I have a vehicle I bought recently and use for business on a part time basis. How may I keep track of expenses for tax purposes?

[PatriciaV]

First, you need to track your mileage. There are several phone apps for that purpose, or you can purchase a mileage log from any office supply store. Record when you use the vehicle for your business, and your starting & ending odometer readings for the year.

Also, keep records of any repairs or maintenance costs, tolls, parking fees, and fuel. While you may find that the standard mileage deduction is better, having a record of your actual expenses will allow you to compare the two vehicle deduction options.

Additional information:

• TurboTax Tax Tip: Business Use of Vehicles
• TurboTax Tax Tip: Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction