Automobile expenses Questions

  • 0

Question: How do I keep track of the business use of my vehicle?

Answer: You can use either of two methods to account for your deductible business use of a vehicle. The first and most cumbersome is to keep track of all your expenses, such as gas and oil, license, insurance, and repair bills. You total all your expenses and take a percentage of that total based on the business miles driven in relation to the nonbusiness miles driven.

Your other choice is to use the standard business mileage rate announced by the IRS each year. This is a flat rate that is multiplied by the total business miles driven for the year. In addition you can deduct your business-related parking fees and tolls paid.



All stories by: speakeasy

Comments are closed.