Claiming Car Deductions
We love helping people buy their new car and drive off into the sunset happy and excited. But don’t forget if you are using your car for business related purposes you are probably eligible for car deductions.
When you use your car for business purposes, you may be eligible for valuable tax deductions that can lighten your financial load. Understanding what you can claim and when is essential for maximising these benefits.
Primarily, you can claim deductions for the business use of your car, including expenses like fuel, maintenance, and repairs.
Keep detailed records
Keep detailed records of your mileage and ensure a clear distinction between personal and business-related trips. The standard mileage rate or actual expenses incurred, such as gas and maintenance, are deductible.
For depreciation, you can claim a portion of your car’s cost each year as it loses value. This applies to the vehicle’s purchase price and any additional business-related upgrades.
It’s crucial to note that commuting from home to your regular place of business is generally not considered a deductible expense. However, travel between different work locations, client meetings, or business-related errands may be eligible for deductions.
Consult with a tax professional
To ensure you meet all requirements and claim the deductions you’re entitled to, keep meticulous records and consult with a tax professional. With proper documentation and a clear understanding of the rules, you can make the most of tax deductions for your business vehicle.
Contact us at Zoom Car Loans when you are ready to buy your next car or need small business finance.