How To Write Off a Business Vehicle

In this episode, Jeff discuss:

• Writing off your vehicle expenses on your taxes
• How important is keeping a mileage log?
• The best way to track the mileage

Key Takeaways:

• Our vehicles can be written off on our taxes in two ways: the standard mileage and actual expenses. The strategy you choose for your business will determine which of these two options is most beneficial.
• Regardless of whether you pick standard mileage or actual expenses, you still need to keep a mileage log to show how many miles were for business and how many were for personal use. Keeping a good mileage log will prevent you from getting into trouble during an IRS audit.
• Keeping track of your mileage is best done in a disciplined manner. Several apps are available on your phone that will track your miles for you automatically, but you must still categorize them as personal or business miles, and if you ever get audited, you must provide the IRS with this information so they know where you go.

“Standard mileage deduction is usually the best for my real estate agents – you will get the rate on all your business miles and inside that includes all your gas maintenance, depreciation, etc." — Jeff Hockett

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