Are There any Vehicle Tax breaks for the Self-Employed? |
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Answer:
Yes, there are vehicle tax breaks that self-employed individuals can take. To take this deduction, you must have detailed records about your business mileage for each year. The best way to do attain these records is to keep a log in your vehicle. Begin the year by recording how many miles are on your vehicle. Any time you drive somewhere that is business related, write in the log how far you drove and what you were doing on the trip. On the last day of the year you will also record the ending mileage of your vehicle. When you file your tax return you will be issued a credit for each mile driven for business reasons. You will want to file your log with your tax information in case of an audit. The log is the proof you have of your business driving habits. Another way to claim a tax deduction for your vehicle is to use one vehicle for business needs and another vehicle for personal needs. If you can do this, you can deduct all of the expenses relating to the business vehicle, including repairs and fuel. This is the best way to claim the vehicle on your taxes if you drive it frequently for business, provided you can afford a vehicle for personal use as well. Finally, a vehicles Gross Vehicle Weight Rating can provide tax breaks. An SUV, Luxury car or Truck that has a certain GVWR can provide tax benefits. Consult with your Accountant to see if your next vehicle purchase is applicable for tax breaks. Trackback(0)
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