![]() Vertex42's Mileage Tracker was designed to track the business miles and the total miles so that you can calculate the "% Business Use." For Charity and Non Reimbursed Business Use In cases where the business use is less than 100%, only a percentage of the total expenses can be deducted. If the vehicle is owned and used 100% for business, then all of these costs can be deducted (see the IRS publication for more information about what costs can be deducted). The Actual Expenses deduction is used for "itemizing" the actual cost of owning, maintaining and using the vehicle for business purposes. The total deduction is then simply the mileage rate multiplied by the reimbursable miles. Use Vertex42's Mileage Tracker to track the miles. Actual expenses for things like gas, insurance and maintenance are not deducted, because they are factored into the mileage reimbursement rate. Under the Standard Mileage deduction, the miles are multiplied by the IRS deduction rate to determine the amount of the deductions. Regardless, both methods require accurate records be kept as evidence for the deductions. ![]() ![]() You should read the appropriate IRS publication about this, because there are certain requirements and qualifications associated with each of these methods. They can choose from the Standard Mileage deduction method or the Actual Car Expenses deduction method. Business owners have two options when it comes to deducting the car expenses.
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