Is buying a New vehicle tax deductible?
Yes, buying or leasing a vehicle are tax deductible but what does this actually do for you? How can you do this? if you use your vehicle for only your business this qualifies you to deduct the entire cost of what it takes to maintain the vehicle from mileage to repairs.
In order to be able to deduct taxes and expenses on a vehicle you must operate a Business or an Limited Liability Company (LLC).
Another big advantage of LLCs is that members can choose how the company will be treated for IRS tax purposes. An LLC can be taxed as a:
- Corporation
- Partnership
- Sole proprietorship
However if you use the vehicle for both personal and business this only allows you to deduct the business use of the vehicle and not personal. You might be asking yourself how to I track the usage or where would I even know where to start to track the usages of the vehicle. Collecting data from the mileage odometer or track all expenses for the vehicle while in your position.
Actual Expenses – To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that’s business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.
Payne Auto Group always strides to make the car buying experience as easy as possible and our experienced finance mangers are here to help answer your questions as well as 179 Tax Deduction information. Payne Auto Group offers Commercial and Fleet vehicles for your business from Trucks, Cargo Vans or Commercial Equipment.
