Making the Most of Your Business Auto Deduction
Making the Most of Your Business Auto Deduction
Seeking the Best Option to Finance and Deduct Your Business Auto Travel Costs
Much has been written over the years about how best for America’s Business Owners to address the issue of how to maximize your business travel deduction for your business mileage. Though there are many options I have learned over the years that almost always the best way to address your business travel is:
Own Your Vehicle vs. Leasing. During a lease you are responsible for paying for the most expensive portion of a vehicle, which is in the early years of a car’s ownership. Thereby leasing a car, on the front end, guarantees that one will pay more costs for a rapidly depreciating vehicle.
Finance Over the Shortest Period Possible. By financing a vehicle over the shortest period possible one is able to mitigate the amount of “extra costs” that are incurred with the way of interest expense. Though when first starting out one may have to finance a car over a longer period than preferred, over time it would be best to look to finance future vehicles, when purchased over the shortest time possible.
Be Sensible to Protect Your Cents. Though there will always be time that it will be imperative to buy a car that is reliable one does not have to “over buy” or by the “latest and greatest” or the “over the top purchase.” If you are buying a car, use your head, not your heart, to ensure that you buy more of what you need rather than what you want.
Luxury Car Purchases. If you are looking to buy a luxury vehicle, do not finance it but pay cash. If you cannot pay cash, then seek to purchase a vehicle that is more in line with your budget. All cars are bad investments, a luxury car is therefore a worse that bad investment. Therefore it is suggested that you do not add one dollars of interest, by financing a luxury vehicle, thereby adding more costs to an otherwise less prudent decision.
Keep a Mileage Log. IRS tax law has long maintained that all business taxpayers that desire to claim a deduction for business miles should keep a by day business log to support their business miles. It is frequently the easiest and most logical way to track your business miles on your business appointment calendar, where you can have recorded both your business miles driven and the attendant related business activity listed.
Live all of your life knowing He is Risen and that Jesus Christ will soon appear in the Eastern Sky calling us all home. Remember to Put God First in All That You Do.
John Dillard, CPA of His CPA, PC (An Atlanta CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304
Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!
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