If you drive your car for work, you may be able to save some money at tax time. It is important to keep records of mileage and expenses to be able to calculate deductions accurately, making sure that you get the most money back from your car in tax season.
Two Types of Write Offs
There are two types of write offs available depending upon how you use your car. Is it your personal car that you also use as part of the business or is it a vehicle that is only for business use? If you use your own car for professional purposes aside from your daily commute, there are deductions that you can take. The per-mile rate for the 2019 tax year is 58 cents a mile for business activities. So when you drive to the airport for a business trip or make a run to the office supply store, those miles are deductible. If you use a vehicle exclusively for business, all maintenance and repairs are deductible, as are tolls, parking fees, insurance, and some other expenses.
Keep Track of Expenses
There is no such thing as too much information when it comes to record keeping for tax purposes. The more meticulous, the better. When recording automotive deductions, make a note of mileage, destination, purpose of the trip, and the name of the project. Enter the information on an Excel spreadsheet to have it handy for tax preparation.
If you get a sizable tax return this year, why not bring it into La Grange Ford? The La Grange Ford family will help you put that cash to good use by getting you behind the wheel of a new Ford that will provide for you for years to come.