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  • Vehicle Mileage Business Tax Deduction

    Vehicle Mileage Business Tax Deduction

    In most cases, you will be required to do some business travel if you are a business owner. Whether you just do a little traveling or a significant amount it is worth deducting on your tax return. Overlooking this mileage tax deduction could cost you more at the end of the year.

    There are two different ways to take the vehicle mileage business tax deduction. You can either claim the actual mileage driven for business purposes or you can deduct the actual expense of operating the vehicle for business use.

    Type of Vehicles For The IRS Mileage Tax Deduction

    You can claim this mileage tax deduction on any kind of car, truck, or sport utility vehicle. You may not take the mileage deduction on large things like dump trucks as these are considered equipment and not vehicles.

    Recording Your Vehicle Business Mileage

    If you want to get the biggest tax deduction possible, it is important to keep very accurate records of mileage driven or expenses incurred for business purposes.

    IRS Mileage Rate For 2010

    If you plan on just claiming the mileage driven for business purposes, then you can currently claim up to 50 cents per mile. This will only be deductible for the miles driven for business travel. Just a reminder that miles driven from home to work are not tax deductible.

    Actual Vehicle Expenses

    If you would like to deduct the actual expense of the vehicle, then you will not be able to deduct the miles driven. You will be able to deduct expenses like repairs, gas, tires, oil changes, etc. You can also deduct the cost of lease payments if the vehicle is leased for business use as well as registrations fees and taxes.

    There are many tax deductions available for tax payers. Above are just a few of them. To learn how to claim more tax deductions and get a bigger refund, please visit TurboTax Online. TurboTax Online offers free tax software to help you maximize your vehicle mileage business tax deductions.

     

    Getting the Most From the Mileage Tax Deduction Video

     
    Published on September 3, 2011 · Filed under: Tax Deductions, Tax Videos;
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