How can I deduct partial use of my personal vehicle as a business expense in my sole proprietorship.?

Question

In the past I leased a vehicle and paid the monthly lease payment out of the business checking account. Now I am considering buying a car instead of leasing. Can I pay a portion of the car payment out of the business (a sole proprietorship) on a monthly basis without running afoul of our friendly tax people.

Answer 1

If you used the leased vehicle for personal use also, you weren't allowed to just claim the whole lease expense as a business expense.

But that said - for a vehicle you own, on the schedule C there's a place to show business miles, commuting miles and personal miles - that should add up to the total miles you put on the vehicle that year. If you use the flat mileage rate, you multiply it by business miles. If you use actual expenses, you take the percentage of those that the business miles are of the total miles.

Answer 2

You must, absolutely must, keep a mileage log for business use. You can deduct the standard mileage rate of 48.5 cents per mile in 2007 and 50.5 cents in 2008

Answer 3

your better off kepting track of miles in writing. not sure but it's like $0.36 per mile.
plus in my business i changed to LLC. BOUGHT THE CAR UNDER THE LLC. INSURANCE UNDER THE LLC.
I WRITE OFF EVERY THING PLUS MILES.