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Are Your Car Repairs 100% Tax Deductible?

There are only two sure things in this world, and they are death and taxes. Every year, people from NYC to LA and everywhere in between have to file tax returns and pay what they owe. Some things are deductible while others are not, and if you make a mistake you just might be in big trouble with the IRS. The IRS does fool around, so make certain that you use a professional tax preparer to avoid problem and drama down the road.

So, here from Sold Business in ,  we are answering this main question—Are car repairs tax deductible?

In short--yes, work-related automobile repairs are usually tax deductible. Customarily, car owners deduct vehicle repairs as part of what are known as “general transportation expenses”, typically assessed through the IRS-determined typical mileage rate of 58 cents for every mile traveled for business purposes When choosing the standard mileage rate method, car owners do not get to deduct individual expenses, but instead they must cover their repair costs at the prescribed standard rate.

In addition, taxpayers can also deduct the actual expenses of owning and operating an automobile for business purposes. This is even possible if the vehicle is only partially used for business practices. For example, a taxpayer that uses a vehicle ½ of the time for business and ½ of the time for personal use can deduct ½ of the repair costs of their tax liability.

Half of these following expenses can also be deducted for car repairs:

• Registration Fees
• Fuel
• Oil
• Garage Rent
• New Tires
• Tolls
• Parking Fees

Now you know what you can deduct, so the next question is this--How Do I Deduct Car Repairs From My Taxes?

When opting for the Actual Expenses deduction method, you should get a hold of a mileage log that shows how often the vehicle will be used for business purposes. To cover your bases, taxpayers should hang onto all invoices, receipts, and other related documents to track repairs, services and products were purchased.

If you own your own business, you can save some serious money on your income taxes, but make sure that you do things right. Whether you drive an old beater or a brand new vehicle, your car repairs and other related expenses are deductible. Those in the know can fully take advantage of these benefits while those who don’t are left in the dust.

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Sources: HowItWorks and Fortune

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