Post a new topic
    4 Replies Latest reply on Jul 15, 2009 6:15 PM by eZeeTax

    Auto Expenses

    Roxie12 Newbie

      Can any one tell me about how to deduct my auto expenses?

      I have read the IRS website and find it to over whelming.

      I would like to know if I should just reimburse myself per mile driven. And if I do that can I still claim maintenance on my car, i.e. new tires, oil changes, etc.


      Should I just give myself a flat reimbursement amount per month for my auto use. And if I do that can I still claim maintenance on my car, i.e. new tires, oil changes, etc.

      A little about my situation. I would say I use my car for business 60% of the time, and I own my car outright, no payments, thank god.

      Any info would be helpful as I just started a small business and would like to do things right.
        • Re: Auto Expenses
          Roxie12 Newbie
          I just read Santa Fe CPA's answer to mileage deductions. But still don't know if I can deduct auto expenses when I take the standard mileage.

          Thank You
          • Re: Auto Expenses
            LUCKIEST Guide
            Auto Expenses, Welcome

            Who are you?? Any one in business should have an Accountant.

            OR talk to a SCORE Counselor online. SCORE is FREE and can help you
            • Re: Auto Expenses
              alexade Newbie
              Auto Expenses are a grave concern in our lives and it is very important to control and manage them properly.
              Now this utility allows you to effectively track your vehicle expenses. It is a simple and useful program which can maintain detailed reports of your vehicle repair expenses. You can also use it to chart the flow and direction of these expenses. You can record information about the garage, date of synopsis, vehicle make/model, the total cost of repairs and other important details. It is easy to add new records into the program by simply clicking the New Record button. An accurate record of all the cost details allows you to keep track of it.
              The Auto Expenses utility allows you to control the wasteful costs which were always driving away your funds before they could be understood. This program is an investment worth investing because of the savings and discipline it brings into your vehicle expenses.
              • Re: Auto Expenses
                eZeeTax Wayfarer
                I would reiterate what Luckiest said, you should a bookkeeper/accountant on call atleast if you are running a small business.

                That said, what is your corporate status? If you are Sole Propreitor and file Schedule C there are two methods of reporting vehicle-related expenses. "Actual Expense Method", you keep track of all vehicle expenses such as gasoline, oil, maintenance, repairs etc. "Mileage Method" also known as standard rate is where you keep a mileage log and track just the mileage.

                Most sole propreitors prefer the mileage method because it is easier to keep track of. You add up the mileage for the year and then multiply to the rate eastablished by the IRS which is 55 cents/mile for 2009. If you drove your car 12,000 miles for business purposes then your vehicle deduction will be$6,600 which is reported on Schedule C, Line 9. You can also add parking fees and tolls, nothing more.

                Lets play with your example. You drive your car 60% of the time for business purposes which leads to 7200 miles (considering 12,000 miles). Instead of $6,600 deduction, you will only be able to deduct 60% of $6,600 which is $3,960.

                Hope this helps you....