You may be able to take the standard mileage rate for business miles driven on your personal vehicle in 2016 or else depreciate the cost of owning your business vehicle used in your business. Here’s how:
1. If you’re using your personal vehicle for business, you can take a deduction for the business miles that you drove multiplied by the IRS standard mileage rate of $.54 in 2016. According to decisions made in recent IRS court cases, the business owner must keep a business auto mileage log to document the date, starting mileage, ending mileage, and business purpose.
2. If your business owns the vehicle and the title of the vehicle is in the business name, then you’ll need to still keep track of business mileage with a mileage log. However, any personal miles that you drive on the business vehicle will be taxable as income to you. The business deductions that you will be able to take include depreciation and the actual expenses incurred for use of the vehicle (ex.-repairs, maintenance, title, tags, insurance, interest on loan, etc.). However, only the percentage of business use based on actual business miles driven will be deductible.
For more information, please call our office today.
If you have questions about starting, growing, protecting, reducing business taxes, or selling your small business, please contact us. As a CPA, Certified Business Advisor, Small Business Consultant, and Advanced Certified QuickBooks ProAdvisor, we specialize in working with small business owners just like you and provide tax, accounting, financial analysis, management, business planning, and small business advisory services. We can advise you on how to start, manage, grow, and terminate a small business. For more information, call (727) 391-7373 or else visit us on the web at http://www.LindaStortzCPA.com.