Business Tax Help 2017: Vehicles for Business Use
Business Use of Vehicles
When it comes to using a vehicle for business, there are two things you should keep track of: mileage and depreciation.
For 2016 the standard mileage rate is 54 cents per mile. This means you should keep track of your business miles to be able to write them off for your taxes. Some examples of business miles are traveling from one office to the other or driving to a client site from the office.
Depreciation should also be tracked because the value of a car drops significantly just after leaving the dealership. Luckily, this drop in value can be deducted without having to spend additional money in order to get a deduction. The IRS has separate deduction caps for different types of care. Here are two popular types:
Passenger Automobiles
- First Tax Year- $3,160 (or $11,160 if bonus depreciation is claimed)
- Second Tax Year- $5,100
- Third Tax Year- $3,050
- Each Succeeding year- $1,875
Trucks and Vans
- First Tax Year- $3,560 (or $11,560 if bonus depreciation is claimed)
- Second Tax Year- $5,700
- Third Tax Year- $3,350
- Each Succeeding year- $2,075
To see how your vehicle use can qualify, give us a call at (714) 533-2600 to schedule a FREE consultation to make sure you are getting every deduction you deserve.
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