Auto & Truck Expenses

The most frequently asked tax questions related to Auto & Truck Expenses
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Auto & Truck Expenses

2018 - Luxury Automobile Depreciation Limits

Asked Monday, December 24, 2018 by an anonymous user
Section 280F limits the §179 expensing and depreciation deductions (including bonus depreciation) with respect to certain passenger automobiles.

For passenger automobiles placed into service after December 31, 2017 the maximum amount of allowable depreciation is increased to $10,000 for the first year;
$16,000 for the second year; $9,600 for the third year; and $5,760 for the fourth and later years. Each of these amounts will be indexed for inflation in years after 2018.

The maximum first-year bonus depreciation (which was scheduled to reduce to $6,400 in 2018 and $4,800 in 2019) will remain at $8,000.

For property placed into service after December 31, 2017, qualified leasehold improvement, qualified restaurant and qualified retail improvement property will be subject to a 15-year recovery period and straight-line depreciation.
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Auto & Truck Expenses

Mileage Rate (per mile) deduction - 2014

Asked Wednesday, January 15, 2014 by an anonymous user
Beginning on January 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile for business miles driven 23.5 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations
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Auto & Truck Expenses

Mileage Rate (per mile) deduction - 2013

Asked Thursday, April 05, 2012 by an anonymous user
Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56.5 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
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Auto & Truck Expenses

Can Corporations use the standard mileage rate method in calculating auto depreciation?

Asked Tuesday, January 03, 2012 by an anonymous user
No. The use of the standard mileage method is limited to a self-employed individual or an employee who operates an automobile for business purposes. Corporations would not qualify. Partners in a partnership would qualify because they are considered self-employed.
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Auto & Truck Expenses

Mileage or actual expense - Annual election

Asked Monday, November 28, 2011 by an anonymous user
The choice of the actual expense method on the first year will bar the use of the standard mileage method ion subsequent years.
If you use the standard mileage method in the first year then you can use the actual expense method in future years.
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Auto & Truck Expenses

Auto expenses

Asked Monday, November 28, 2011 by an anonymous user
The actual expense method allows a individual to deduct all out of pocket costs for operating the auto plus depreciation if you own the auto.
Some of those costs are Gas, insurance, repairs & maintenance garage rent, lease fees, licenses, loan interest, oil changes, parking fees, tires, tolls, towing and registration fees.
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Auto & Truck Expenses

Traffic tickets

Asked Monday, November 28, 2011 by an anonymous user
No. Fines for traffic violations, parking violations are not deductible.
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Auto & Truck Expenses

Taxi - standard mileage rate

Asked Monday, November 28, 2011 by an anonymous user
As of 12/31/10 the ban on using the standard mileage rate on auto's used for hire such as a taxi was lifted. The standard mileage allowance for business use of a auto in 2013 is 56.5 cents per mile for business miles driven.
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Auto & Truck Expenses

Auto lease payments

Asked Monday, November 28, 2011 by an anonymous user
Yes. If you use a car entirely for business the cost of leasing is deductible. You cannot depreciate a car you lease. You can choose to deduct the standard mileage rate in lieu of actual expenses including lease payments.
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Auto & Truck Expenses

What documentation is needed to deduct auto expenses?

Asked Monday, November 28, 2011 by an anonymous user
You should maintain a log or diary of your auto expenses. If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes. If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.
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