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Deducting Car Expenses
September 25, 2008
If you’re like most Americans, car expenses take a large chunk out of your monthly income. Payments, gas, insurance, repairs, tolls, and parking fees – the list goes on and on. Fortunately, there may be a way to take off these expenses when it comes time to pay your taxes. This can mean a big savings in your tax bill. So with the soaring price of gasoline, the deduction for business use of your car is more important than ever. You have two options: Write-off the actual costs related to your business travel, or claim an IRS-fixed standard mileage rate for the number of business miles driven during the year (IRS-set rate for 2008 is 50.5 cents per mile for the first half of the year and 58.5 cents per mile for the second half of the year). Assuming you’re eligible for either option, use the one that produces the larger deduction.
Posted by Shanu Singh Guliani on September 25, 2008 | Comments (0)
