People greatly enjoy owning cars,
but no one really likes paying taxes on these vehicles.
Fortunately, however, there are
some ways to reduce auto-related taxes and to reduce taxes in general that are
related to driving and transportation, especially if you drive as part of your
work.
Mileage Deductions
To start off with, one of the easiest ways to save money is
by deducting mileage.
When you drive from one work site to another, document the
mileage. When you take a client somewhere, document the mileage. It might not
seem like a few miles here and there would make a difference, but the related
deductions can really add up.
This year, you can enjoy a deduction of 53.5 cents for each
business-related mile that you drive.
Of course, there are variations based on how often you
drive, if you own a car used exclusively for business, if you’re self-employed,
and more.
To ensure you’re deducting appropriately, seek advice from a
tax professional.
Property Ownership
Deductions
Another surprising way to save money applies if you own a
rental property.
Anytime you have to drive to and from the property for
maintenance, showing the property, or other business-related purposes, you can
claim and deduct the mileage.
Car Care
If you own a business car or a car used for business
purposes, any care and/or maintenance you do to keep it looking and running
great for business can be deducted.
This includes almost everything. From professional
car-washing costs to inspection costs, most things can be deducted.
If you’re unsure about a potential deduction, though, it’s
always best to check with a tax professional before applying it.
Health-Related
Driving Costs
No one wants to have poor health that causes them to
regularly visit the doctor. However, this is a reality for some people.
If your medical expenses end up being over 7.5% of your
adjusted gross income, you can deduct any travel expenses related to your
health and health care.
As you can see, there are
lots of ways to save money on “car costs.” To learn about more and to get help
finding deductions that apply to you, be sure to contact a tax professional.