What Tax Deductions Can I Take For Using My Car?

As the tax year ends and you scramble to pull together your year end tax deductions, people often ask us whether they can get  a deduction for using their automobile.  It’s important to understand these rules for both employees and business owners alike as this could mean big bucks in your pocket come tax time. According to the IRS Topic 510 business use of a car (http://www.irs.gov/taxtopics/tc510.html), you can generally figure the amount of your deductible car expense using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, before choosing a method, you may want to figure your deduction both ways to see which gives you a larger deduction. Please refer to Publication 463, Travel, Entertainment, Gift and Car Expenses, for the current standard mileage rate. If you use the standard mileage rate, you can add to your deduction any parking fees and tolls incurred for business purposes. ...

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Great Small Business Tax Deductions

Don’t miss these fourteen tax deductions for your small business. It’s simple: The more tax deductions your business can legitimately take, the lower its taxable profit will be. Also, in addition to putting more money into your pocket at the end of the year, the tax code provisions that govern deductions can also yield a personal benefit: a nice car to drive at a small cost, or a combination business trip and vacation. It all depends on paying careful attention to IRS rules on just what is — and isn’t — deductible. When you’re totaling up your business’s expenses at the end of the year, don’t overlook these 14 common business deductions. 1. Auto Expenses If you use your car for business, or your business owns its own vehicle, you can deduct some of the costs of keeping it on the road. Mastering the rules of car expense deductions can be tricky, but well worth your while. There are two ...

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2010 Mileage Rates!

As each year changes, so do the deductions we can take every year as it relates to mileage with business, charitable, and medical mileage. I often find that people I meet don’t keep the best track of these records, and every dollar you save can help you increase your bottom line. The Internal Revenue Service issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1st of this year, the standard mileage rates for the use of a car (vans, pickups, or trucks) will be: 50 cents per mile for business miles driven 16.5 cents per mile for medical or moving purposes 14 cents per mile driven in service of charitable organizations The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates reflect generally lower transportation costs compared to a year ago. The standard mileage ...

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