Question

Tax deduction for vehicle purchase to be used in small business

Forum|Forum|4 years ago
October 27, 2021
1 reply
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Hello. I purchased a car I use for my small business (to run errands, travel, etc.) What can I write off, if anything, in terms of the cost of the car itself? I purchased the car used through a dealer in California and have a sole proprietorship.

S

shirleyh88

Hello jaybeel!

Thank you for your question. If you are using the Actual Expenses method to deduct expenses on your vehicle that is used for your business, the following are some of the costs that you can deduct on your tax return:

1. Lease payments

2. Gasoline

3. Auto insurance

4. Maintenance (such as oil changes, tire rotations, brake pad replacements)

5. Title of your car, licensing, registration fees

6. Purchase of new tires

7. Vehicle depreciation

Please refer to the article below for reference:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getting-the-biggest-tax-deduction/L0wIEUYhh

Please let me know if this answers your questions, or if I can be of further assistance.

Thank you!

Shirleyh88