Deduct Your Automobile Expenses

Call Beucler Company CPA to help you with maximizing your income tax deductions.  Income tax laws can be difficult to understand and are always changing.  Make sure you are maximizing your deductions and that your records are audit proof.

If you use your car in your job or business and you use it only for that purpose, you may deduct its entire cost of operation (subject to some limitations).  However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use.  You can generally figure the amount of your deductible car expense using one of two methods: the actual expenses or the standard mileage rate.  With either method a mileage log is required to differentiate business versus personal mileage.  A mileage log should include date, business purpose and mileage.

Actual Expenses.  If you take the actual expenses, you can deduct the depreciation, gas, oil, insurance, tires, licenses, repairs, etc. If you choose to take actual expenses when you first start using the car for business, you cannot change to the standard mileage rate deduction.  You still must maintain a log to differentiate between business and personal mileage.  There are limitations on the amount of depreciation allowable for higher value vehicles.

Standard Mileage Rate.  If you use your car for business purposes, you may deduct 56.5 cents per mile for un-reimbursed mileage for 2013 Under this method you are not required to maintain records of actual expenses, but be sure that you keep a written log of your total mileage and business mileage.  In the event of an audit, no log means no deduction.  With this method you may deduct parking fees and tolls in addition to the standard mileage rate.

Other Mileage   In addition to business mileage, did you know that other types of mileage are deductible if you can itemize? If you are involved in charity or volunteer work for a non-profit organization, you can deduct your mileage at 14 cents per.  The mileage to and from a doctor or dentist's office is deductible at 24 cents per mile.

The taxpayer should seek advice
Based on the taxpayer’s particular circumstances
From an independent tax advisor

Beucler Company CPA, Inc.
2503 Summit St.
Columbus, OH  43202   
(614) 784-1099

Internal Revenue Service Circular 230 Disclosure:  As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.