End Your Year Like A Business Pro
Guide 4: Vehicle Expenses
Vehicle Expenses Can Mean BIG Tax Deductions
Vehicle Mileage Is An Important Tax Deduction
Vehicle expenses can be a huge money saver at tax time. As a business owner, you likely drive a lot for your company. Clients, office supplies, product deliveries, etc. The list goes on.
Each mile you drive for business can be a tax deduction. As long as you track it right.
When it comes to vehicle expenses, you can choose to deduct actual vehcile expenses or you can choose to deduct your mileage.
Either way, it is smart to track both during the year and determine which is more beneficial to you at the end of the year.
While you mileage log won’t have much of any effect on your actual financial position or your bottom line, your actual vehicle expenses will so it is a good idea to keep those reciepts anyway.
For 2017, the deductible mileage expense is 53.5 cents per mile. If you drive 1000 miles, that is a whopping $535.00 in buiness deductions.
Are you sold yet?
Now, I must tell you that you need to keep a mileage log to track these miles.
You can’t just guess or make up a number. The IRS has specific things they require in your records.
And, lucky for you, I’ve got a mileage log template you can download absolutely free that has all of the columns added that you need. It will even do the math for you and add up all of your mileage. Cool, right? Download it if you want here.
This is the same log I use in my business. I saved it to the cloud and can access it from my phone. So, I quickly jot down the important info at the beginning and end of my trips. Easy!
No going back and trying to remember where I was at 11 months ago. The IRS is happy they have documentation, and I am happy for the deduction. Everyone wins here.
No matter what your method of tracking your vehicle mileage and expenses, it’s wise to keep them tracked so you can maximize those important tax deductions.