![]() ![]() ![]() Then that’ll be your deduction instead of the mileage. If you keep very detailed records throughout the year, you can add up how much your car depreciated and how much you spent on gas, repairs, tires, tune-ups, car insurance and registration fees. This option will take a little more work. 4 So for example, if you drive 5,000 miles for business purposes in 2022, you’ll be able to deduct $2,925 off your taxes. As of 2022, the standard mileage rate is 58.5 cents per mile. Use the standard mileage rate.Īdd up all the miles you drove for your business and multiply by the IRS’ standard deduction rate to figure out your how much you can take off. Now, there are two ways you can claim this deduction: 1. If you can prove you use a vehicle for business purposes, you can deduct those expenses from your income. But we put together a list of common deductible business expenses that most small-business owners can write off:Ī lot of small-business owners use vehicles to get stuff done-whether it’s driving to and from meetings with clients or using a pickup truck to move heavy equipment between work sites. 23 Small-Business Tax DeductionsĬertain expenses are specific to the kind of business you run. Still not sure? Don’t worry! We’ll help you get a better grasp on what you can write off as a business expense on your tax return. Here’s what you need to know: The IRS considers anything that’s “ordinary and necessary” to running your business a tax-deductible expense. And Uncle Sam doesn’t exactly give you a road map here. But not paying attention to your taxes could cost you big-time-especially if you’re not sure which small-business tax deductions you’re eligible for. We don’t have to convince you that taxes are complicated-especially for small-business owners. ![]()
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