Navigating the complexities of business vehicle expense deductions can be daunting, especially with evolving tax laws and annual inflation adjustments. The good news is that there are streamlined methods available to help you maximize your deductions. Whether you choose the cents-per-mile method or the actual expense method, understanding these options can significantly impact your bottom line. Explore this article to uncover how you can effectively calculate your business vehicle deductions under the latest tax regulations.
Business owners must choose between the following two methods for claiming allowable business-use vehicle deductions:
For 2024, the standard mileage rate is 67 cents per business mile for 2024 (up from 65.5 cents for 2023). This rate is meant to cover all business vehicle expenses, such as gas, maintenance, repairs, tires and insurance. Important: A depreciation allowance is also built into the standard rate.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).