Businesses that use a car or other vehicle may be able to deduct the expenses of operating that vehicle on their taxes. Generally, a business can use one or two methods to figure their deductible vehicle expenses:
- Standard Mileage Rate
- Stand mileage rates for 2019:
- $0.58 per mile for operating a vehicle for business use
- $0.20 per mile for operating a vehicle for medical or moving purposes
- $0.14 per mile for operating a vehicle in service of charitable organizations
- Actual Vehicle Expenses
- These expectations can include items such as Licenses, Gas, Oil, Tolls, Insurance, Repairs, Lease payment and/or Depreciation (limitations and adjusts may apply)
Businesses that qualify must make a choice to use either the Standard Mileage Rate or Actual Vehicle Expenses by the due date of their return, including extensions. They cannot revoke their choice for that vehicle.
I If you would like to speak to one of our tax specialists for more information, please call: 1 (866) 760-0940 or send a note to Miranda.Hawk@brixeyandmeyer.com to setup a time to speak.