I need a car I can make sales calls with and am looking to buy a used car under my business name. Is the cost tax deductible, or do I depreciate it?
2007-09-21 04:54:38 · 9 answers · asked by Expurt Spellr 4 in Business & Finance ➔ Taxes ➔ Other - Taxes
It depends on how many miles you drive. If you buy it through you business you'll end up depreciating the cost of the car as well as taking the cost of what you spend on your car(gas,oil and repairs) as expenses on your business tax return. However if you buy it personally then you can charge your business mileage (currentlly@48.5 cent per mile changes at least each year). With this option you have to keep track of the miles that you drive for business ( not only sales calls but any trip you make for business reasons, no commuting between home and office though)and will take the mileage as a expense on your business tax return. bear in mind though that you can't deduct ANY of the repairs or deprecation of the car as it is included in the mile rate. You have to look at both options and decide which is a better financial option for you
2007-09-21 05:45:32 · answer #1 · answered by ravenbb 2 · 1⤊ 0⤋
Expenses of the car related to the business are tax deductible. The purchase price is depreciated.
If you only use the car 50% for business, then only half the expenses and depreciation may be claimed.
2007-09-21 04:58:32 · answer #2 · answered by Tim 7 · 1⤊ 0⤋
If the vehicle is area of a organization that you run and used rather for that organization, you are able to likely depreciate it. in case you itemize, you've a determination of deducting state and local taxes, otherwise sales tax paid. in case you got a automobile, and are deducting sales tax, then you are able to upload the sales tax paid on the vehicle to the quantity given interior the table on your state. If the vehicle is electrical powered or a hybrid, there is an ability conservation deduction you'll probable be eligible for. the quantity might want to matter on what automobile you got. those are the in worry-free words deductions that come to ideas that you're waiting to absorb regard on your automobile purchase. In none of those circumstances are you able to declare the entire value as a deduction.
2016-10-20 02:21:44 · answer #3 · answered by rhona 4 · 0⤊ 0⤋
The car would be capitalized on the business' tax return. The cost of taking care of the car could be expensed, though.
2007-09-21 15:12:06 · answer #4 · answered by Candie 1 · 0⤊ 0⤋
It is a business deduction but you will have to depreciate. TurboTax leads you through this.
2007-09-21 04:57:55 · answer #5 · answered by Suzy 5 · 2⤊ 0⤋
Yes to both.
In the first year, you can (generally) write-off the cost. After that, it's a percentage plus expeditures.
Also...if it is in the business' name, YOU can't claim it. The Buisness has to claim it!
In any case, keep those receipts!
2007-09-21 05:49:50 · answer #6 · answered by jcurrieii 7 · 0⤊ 1⤋
You may be eligible to purchase tax free with your tax number also?
Gas & expenses may also be written off, if the car is soley used for business. You must keep written records of all this.
2007-09-21 05:06:32 · answer #7 · answered by Anonymous · 0⤊ 4⤋
totally deductible we do it every year plus you get 47 cents per mile
2007-09-21 05:04:48 · answer #8 · answered by kellie r 5 · 0⤊ 2⤋
and please keep records of when you use car for business, where you went, mileage, gas receipts, etc.
2007-09-21 05:03:32 · answer #9 · answered by nin 5 · 1⤊ 0⤋