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If you like this video please share this link: How To Deduct Auto Expenses
Hi I am Robin Platzer and this is your two minute tax tip on - How To Deduct Your Small Business Auto Expenses
Today we are going to discuss auto expenses
I get a lot of questions from my clients about auto expenses and how they should track them and the bottom line is the first year you place your car in service you want to track it two ways that means you want to track your mileage and you also want to track your actual expenses.
Now when it comes to mileage the IRS is very particular they want to keep a lot odometer reading of where you went , how many miles you drove and the purpose of your trip and you need to keep this information in a log because mileage has a tendency to get audited, so keep a log of mileage in cast the IRS asks for proof of where you have been.
Now for the actual auto expenses its gong to be the same thing, you are only going to get to deduct the percentage of your car that you are using for business. So lets say that 80% of the time I use my car for business and the other 20% of time I am using my car for personal use like going to the grocery store and other personal errands. So because I use my vehicle only 80% of the time for business then I can only deduct 80% of my vehicle expenses. Vehicle expenses would include things like fuel, oil changes, registration and repairs. Keep track of all of these expenses and give them to your accountant at the end of the tax year along with your mileage log.
So again when it comes to vehicle expenses you have two choices, you can choose mileage or you can choose actual, and your first year you put your vehicle in service you want to track both to get the best deduction possible
I am Robin Platzer with the Tax Handlers.com please be sure to comment and like below and of you need my services you can reach me at (941)377-6797 or email@example.com.