April 15. It’s the one day when lots of employees are excited because they know that once they file their taxes, they can look forward to receiving a nice refund in the mail. However, if you happen to be an individual who is a small business owner, then you already know, firsthand, that it’s more about finding as many deductions as possible so that you won’t have to owe Uncle Sam a lot of money.
Well, when it comes to finding viable write-offs, have you ever considered your vehicle? If you’re interested in knowing about some auto tax deductions that can help you during tax season, we’ve provided you with five of them below:
Having a company car. Some people are hesitant to buy a company car because of the fact that it’s an additional expense. However, the reality is that it can actually prove to be a really good investment. That’s because when you purchase a company car, you can write-off a lot of its expenses including gas, insurance, tires and even license and registration fees.
Making charitable car contributions. Oftentimes, when we think of making charitable contributions, especially when it’s business-related, things like office furniture and business equipment are what tend to come to mind. But did you know that if you have a car that you’ve used for business-related reasons and it’s getting to a point that you’re ready to trade it in, if you decide to donate it to charity instead, you can get a deduction for the amount of its market value? One website that provides a list of organizations that accept car donations is Donate A Car.
Using your car for business purposes. So, what if you happen to be someone who doesn’t use your vehicle only for company reasons, but you do run business errands from time to time? If that’s the case, you can still qualify for some deductions. Something that can help you to keep track of your mileage when you’re making company runs is a device that is known as CarCheckup. By installing it, you can keep accurate records.
Gas mileage that’s related to business use. Gas is pretty expensive, but the good news is that when you’re filling up your tank so that you can do things for your business, you can write that off as well. One website that provides detailed information on gas mileage deductions is 1040.com. Just go to the site and put “business use of car” in the search field.
Your car’s depreciation. If you happen to live in Florida, you have an older company car and you’re looking for Florida cheap car insurance for it so that you can save even more money, you’ll be glad to hear that there’s one other thing that you can apply to a tax deduction: your car’s depreciation. It’s basically what you can deduct for general wear and tear. In fact, in 2013, the standard mile deduction was 16,202 miles x 56.5 cents per mile = $9,154. For more information on auto tax deductions for business purposes, visit IRS.gov and put “business use of car” in the search field.