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#1 <Steve>

<Steve>

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Posted 20 June 2011 - 03:54 PM

I donít know if DaveT is out there, but I have a question regarding using a vehicle in my real estate business.

Currently I deduct the mileage for business use, using my personal vehicle. The mileage is greater than deducting the vehicle expenses. If I purchase a vehicle through my business (business name on title) and it is used for business, I assume I can deduct the cost of the vehicle over time? And can I still deduct the mileage for each year?

Just a kid living the dream


#2 bwalston

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Posted 20 June 2011 - 07:25 PM

I donít know if DaveT is out there, but I have a question regarding using a vehicle in my real estate business.

Currently I deduct the mileage for business use, using my personal vehicle. The mileage is greater than deducting the vehicle expenses. If I purchase a vehicle through my business (business name on title) and it is used for business, I assume I can deduct the cost of the vehicle over time? And can I still deduct the mileage for each year?

Hi Steve. If you use the standard mileage rate, you cannot deduct your actual car expenses for that year. Actual costs include depreciation or lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, and vehicle registration fees. An expense that you CAN take in addition to the standard mileage rate is the interest on any financing you have on the vehicle.

Further, to use the standard mileage rate, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

Hope this helps :-)

#3 <Steve>

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Posted 20 June 2011 - 08:08 PM

That helps. Thank you sir!

Just a kid living the dream





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