In most cases, you will be required to do some business travel if you are a business owner. Whether you just do a little traveling or a significant amount it is worth deducting your vehicle mileage for your buisiness on your income tax return. Overlooking this deduction could cost you more at the end of the year.
There are two different ways to take the vehicle mileage business tax deduction. You can either claim the actual mileage driven for business purposes or you can deduct the actual expense of operating the vehicle for business use.
Type of Vehicles
You can claim this deduction on any kind of car, truck, or sport utility vehicle. You may not take the deductions on large things like dump trucks as these are considered equipment and not vehicles.
If you want to get the biggest deduction possible, it is important to keep very accurate records of mileage driven or expenses incurred.
If you plan on just claiming the mileage driven for business purposes, then you can currently claim up to 58.5 cents per mile. This will only be deductible for the miles driven for business travel. Just a reminder that miles driven from home to work are not deductible.
If you would like to deduct the actual expense of the vehicle then you will not be able to deduct the miles driven. You will be able to deduct expenses like repairs, gas, tires, oil changes, etc. You can also deduct the cost of lease payments if the vehicle is leased for business use as well as registrations fees and taxes.
To learn more about the vehicle mileage business tax deduction, visit TurboTax Online. TurboTax Online offers step by step instructions to get you the most deductions possible.