If you use your car for business purposes, there are a few ways to claim this deduction. For example, qualified performing artists, members of the U.S. armed forces, and fee-basis state or local officials are all eligible for business vehicle write-offs. Similarly, individuals who use their car to attend medical appointments or volunteer their time can claim miles for specific trips if they itemize their deductions on Schedule A.
Tax advantages of writing off a car for business
A car you use exclusively for business purposes is one of the most lucrative ways to reduce your tax liability. This is because it can double as a personal vehicle, while the business use percentage is based on how many miles you drive in your business. However, if you want to get the most out of this deduction, you’ll have to keep detailed records of the expenses you incur in your business vehicle. And now, you’re wondering how to write off a car for business? You can also use MileIQ to verify your business vehicle expenses. (more…)