Updated for tax year 2022 If you frequently drive your car for business purposes, you know how car expenses can quickly add up. And it’s not just the cost of gas, which fortunately has gone down from its high a few years ago. Every time you drive your car, you use oil, weaken your brake pads, clog up your air filter and wear down your tires – the list goes on and on. All of this wear and tear on your vehicle for business purposes ultimately requires more servicing, plus your car depreciates in value. You may even pay more in car insurance when you drive your car more miles. Fortunately, there is a silver lining. When it comes time to file your taxes, your car expenses can also help lower your tax bill if you can deduct them as a business expense. Here’s how to make sure you get the deductions you deserve. 1. Understand the standard mileage rate vs. actual expenses You can deduct your vehicle expenses in one of two ways. You can track all your car expenses, including gas, oil, ...
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