Businesses that use a car or other vehicle may be able to deduct the expense of operating that vehicle on their taxes. Businesses generally can use one of the two methods to figure their deductible vehicle expenses:
For 2019, here are the standard mileage rates for calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes:
Of course, business taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Here are some facts to help business owners understand the differences between the two methods of figuring their deductible vehicle expenses:
o Depreciation – limitations and adjustments may apply
Businesses can see Publication 463, Travel, Gift and Car Expenses, for a full list of actual expenses and how to calculate them.
Share this tip on social media — #IRSTaxTip: Small businesses can benefit from deducting vehicle costs on their taxes. https://go.usa.gov/xm5TD
The IRS is committed to protecting the privacy rights of America’s taxpayers. In fact, the right to privacy is one of ten rights the Taxpayer Bill of Rights gives all taxpayers. Taxpayers have the right to expect that any IRS inquiry, audit, or enforcement action will comply with the law and be no more intrusive […]