As we draw nearer to the tax filing deadline, many are looking for ways to get more out of their return. What many people fail to consider is that there might be automotive tax deductions and write offs that you qualify for. Before filing your taxes, consult a professional firm, but here are some vehicle tax deductions that you may just qualify for.
Business Expenses: If you use your vehicle for work exclusively, or even just some of the time, you could deduct car expenses on your taxes. If you have a full-time job, but occasionally use your vehicle, you may qualify for write-offs, as long as your vehicle use goes beyond commuting to and from your office. Typically, your biggest deductions will come from mileage which can really add up. Consult your tax advisor for the current mileage rates. Be sure to keep meticulous records!
Rental Property: If you own property that you rent out, you may be able to claim the mileage that you rack driving to and from the property.
Transportation: Do any volunteer or charitable work? You might be able to deduct things like parking fees and tolls related to those efforts!
Job Hunting: If you’re driving quite a bit while searching for employment, there might be an opportunity to deduct the mileage you’re encountering.
Medical Expenses: According to Julian Block, if you incur medical expenses that amount to more than 10% of your income for the year, you might be able to deduct those travel expenses such as flights, mileage, parking, tolls, etc.
Your tax professional can help you understand the best ways to get the most from your return, and what automotive specific deductions you qualify for. Good luck this tax season!
