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
WASHINGTON —The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning July 1, 2019. The rates will be: five (5) percent for overpayments [four (4) percent in the case of a corporation]; two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000; five (5) percent […]