With April here, now is the time to get your tax affairs in order if you already haven’t done so. Can being a vehicle owner help you save money come tax time? Our Acura financial center from MotorWorld Acura provides some helpful tips to get the most out of your tax return.
Vehicle Cost Deduction
IRS code Section 179 allows citizens to write personal property on their income tax as a business expense. This includes your vehicle. To qualify your vehicle for the deduction, it has to weigh under 6,000 pounds, and you have to use it for business purposes at least 50% of the time.
Gas Mileage Deduction
You can write off a portion of your travel cost. The most common method is the standard mileage rate where you can deduct 67 cents for each mile driven. However, you can only deduct mileage used for business commutes.
For example, if you drive 5,000 miles for the tax year, and 3,000 of those miles are business-related, then you can get a $2,010 (3,000 x .67) write-off.
Car Loan Write-off
If you’re still financing the vehicle, you can deduct a portion of the interest. Like mileage, the amount that can be deducted depends on the frequency of usage for business engagements. For instance, if you use the car for business 60% of the time, then you qualify for a 60% interest deduction.
Chat with the Acura Financial Team at Our Wilkes-Barre, PA Dealership
We’re a dealership, not an accounting agency, so remember to always speak with a tax preparation expert to determine the optimal deductions. Our finance department at MotorWorld Acura, though, can assist you in loan financing and getting you qualified.