If you use an automobile for
business, you may be able to
receive a tax deduction to lower
your income tax. Deducting
auto expenses requires diligent
recordkeeping and accurate
calculations. There are two ways
to calculate your auto deductions:
• Actual expenses. Track all
eligible deductions, such as
the cost of gas, oil, repairs,
tires, washing, licenses and
depreciation or lease payments.
• Standard mileage rate. Instead
of tracking the above expenses,
track the business mileage you
accrue and use a standard rate.
For 2015, the standard mileage
rate is 57.5 cents per mile.
Whether you own or lease your
vehicle, both of these methods
are viable options.
Taxpayers who wish to use the
To receive these deductions, you
must keep accurate records of the
miles incurred for business, dates
of business use, destinations
and the business purpose. You’ll
also need to note the odometer
readings at the beginning and end
of the year to determine the total
miles for all uses. If records are
not accurate enough and you are
not able to substantiate your claim,
the IRS may disallow a deduction
Please note that you cannot
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