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Crucial Tax Tips for Landlords: Part Five


Auto Expenses You Can Actually Deduct

by Niman Singh

TReXGlobal.com

Dollar sign2Vehicle 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

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Posted on Monday, November 24th, 2008 at 8:45 am and is filed under AAOA Forum. You can follow any responses to this entry through the RSS 2.0 feed.

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4 Responses to “Crucial Tax Tips for Landlords: Part Five”

  1. Sid says:

    you guys are doing a great job! keep up the good work!

  2. [...] Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses You Can Actually Deduct Look For Properties While On Vacation Calculating Gain on Sale of Rental Property New Property [...]

  3. [...] Office DeductionUse Depreciation to Lower IncomeSpread Out RepairsUtilities That Landlord PaysAuto Expenses You Can Actually DeductLook For Properties While On VacationCalculating Gain on Sale of Rental PropertyNew Property [...]

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