Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require […]
When you think about tax deductions for vehicle-related expenses, business driving may come to mind. However, businesses aren’t the only taxpayers that can deduct driving expenses on their returns. Individuals may also be able to deduct them in certain circumstances. Unfortunately, under current law, you may be unable to deduct as much as you could
You don’t have to be in business to deduct certain vehicle expenses Read More »
If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting
Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses Read More »
Although the national price of gas is a bit lower than it was a year ago, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2023. The IRS recently announced that the 2023 cents-per-mile rate for the business use of a car,
The standard business mileage rate is going up in 2023 Read More »
Individuals can deduct vehicle-related expenses in certain circumstances. Unfortunately, under current law, you may not be able to deduct as much as you could years ago. For 2018 through 2025, business and moving miles are deductible only in limited circumstances. Fortunately, if you’re eligible to deduct driving costs, the IRS recently increased the standard amounts
Vehicle expenses: Can individual taxpayers deduct them? Read More »
After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will
Will the standard business mileage rate go up in 2022? Yes! Read More »
The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) Plus, current
Providing a company car? Here’s how taxes are handled Read More »
If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. Cents-per-mile vs.
Tax depreciation rules for business automobiles Read More »
If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting
Recordkeeping DOs and DON’Ts for business meal and vehicle expenses Read More »
Are you considering buying or replacing a vehicle that you’ll use in your business? If you choose a heavy sport utility vehicle (SUV), you may be able to benefit from lucrative tax rules for those vehicles. Bonus depreciation. Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired
Need a new business vehicle? Consider a heavy SUV Read More »
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