Tax Tip 2019-57: Small businesses can benefit from deducting vehicle costs on their taxes

 

IRS Tax Tips May 10, 2019

Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media

Issue Number:    Tax Tip 2019-57 Small businesses can benefit from deducting vehicle costs on their taxes Businesses that use a car or other vehicle may be able to deduct the expense of operating that vehicle on their taxes. Businesses generally can use one of the two methods to figure their deductible vehicle expenses: Standard mileage rate Actual car expenses For 2019, here are the standard mileage rates for calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes: 58 cents per mile driven for business use 20 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations Of course, business taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Here are some facts to help business owners understand the differences between the two methods of figuring their deductible vehicle expenses: Businesses that want to use the standard mileage rate for a car they own must choose to use the standard mileage rate in the first year they use the vehicle. Then, in later years, they can choose to use either the standard mileage rate or actual expenses. If a business wants to use the standard mileage rate for a car they lease, they must use this rate for the entire lease period. The business must make the choice to use the standard mileage rate by the due date of their return, including extensions. They can't revoke the choice. A business that qualifies to use both methods may want to figure their deduction both ways to see which gives them a larger deduction. Here are some examples of actual car expenses that a business can deduct: o Licenses o Gas o Oil o Tolls o Insurance o Repairs o Depreciation – limitations and adjustments may apply   Businesses can see Publication 463, Travel, Gift and Car Expenses, for a full list of actual expenses and how to calculate them. More Information: IRS issues standard mileage rates for 2019 IRS Notice 2019-02 National Small Business Week Share this tip on social media -- #IRSTaxTip: Small businesses can benefit from deducting vehicle costs on their taxes. https://go.usa.gov/xm5TD Back to Top         Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535