Everything You Need To Know About Tax Deductible Vehicle Expenses

When it comes to deducting auto expenses on your taxes, did you know what using a personal vehicle for business purposes can help you save some significant cash? On your taxes, you have two vehicle claims you can choose from. You could choose to claim the standard mileage rate or report any expenses incurred while using your vehicle for business-related activities.

Standard Mileage Rates
So what if you choose to claim the standard mileage rate? This option, according to the Drive Now experts for top car loans Arizona has to offer, is the simplest choice you could make. 2015’s rate of 57.5 cents/mile, but if you choose the option to claim this rate, you won’t be eligible to claim any car expenses for the year, including lease payments, fuel, insurance, or vehicle registration fees. In an average case, choosing the standard mileage rate will save more money than claiming any other incurred expenses.

It should be noted that cases vary depending on how often your vehicle is used for business purposes versus personal and whether or not your vehicle is tied to a lease.

Actual Expenses
The other option includes any actual expenses. But what is an actual expense? Check out the list below.
-Depreciation
-Garage rent
-Gas and oil
-Insurance
-Lease payments
-Licenses Parking fees
-Registration fees
-Repairs
-Tires Tolls

In some cases, this choice could give you the best bottom line. This option, similar to the standard mileage rate, also depends on how often your vehicle is used for business purposes as opposed to personal purposes. In addition, some certain factors may come into play if you are an employee working for a business that provides a vehicle for you.

Deducting From Taxes
When it comes down to actually saving money on your taxes, you must first add the Schedule C, which is the business income and expense form. Have any more questions on how to get the best return on your taxes based on your vehicle usage? Want to learn more about the best car loans Arizona has to offer? We can help! Be sure to stop by your nearest location to meet with an expert in person or give your friends at Drive Now a call today!