When claiming vehicle expenses, keep in mind one rule:
No mileage log = No deduction.
Whether you are claiming:
- Mileage at the IRS 2012 rate of 55.5 cents a mile, or
- Actual expenses which includes depreciation, interest, gas, vehicle licenses, oil, repairs, etc.
A mileage log is a must. Your mileage log should include miles driven on a daily basis broken down into the required components of investment, business, personal and commuting miles. For business purposes , you should state the purpose of the trip in addition to the miles driven.
Whether you are claiming the mileage method or actual expenses method, you may also deduct loan interest and parking and tolls.
If you would like to learn more about this tax strategy, please call Susan at 847.895.9880.