AAOA Blog

Auto Expenses You Can Actually Deduct

by Niman Singh

TReXGlobal.com

Vehicle expenses paid exclusively for rental activity can be fully deductible.

Using the actual expense method instead of standard mileage might be more beneficial if your vehicle incurred a lot of expenses during the year.

Usually the largest vehicle expense that you can deduct is depreciation, which allows you to deduct the value of your vehicle over a period of 5 years.

Many times, depreciation is the factor that determines which expense method will be used.

Other deductible costs include car insurance, DMV registration fees, tolls, parking, gas, oil changes, tune-ups, tires, maintenance, etc… When deducting actual vehicle expenses, it is very important to keep a track of costs and receipts. If you do not use the vehicle solely for rental activity, then you should keep a record of mileage traveled for your business, so you can deduct a percentage of the vehicle’s actual expenses.

Whether using the standard mileage or actual expense deduction, be sure to record all expenses related to your rental activity. You usually won’t know which deduction method to use, so it’s best to just keep a journal of all vehicle activities.

For more Tax Tips and Tax Saving Web Tools like DepreciateEm.com and DeferEm.com, check out TReXGlobal.com.

Did you miss these tax tips?

 Home Office Deduction 

 Use Depreciation to Lower Income 

 Spread Out Repairs

 Utilities that Landlords Pay

American Apartment Owners Association offers discounts on products and services related to your commercial housing investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing.  Find out more at www.joinaaoa.org.

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