Small Business Car
So you have your own small business, and there are times when your own personal car seems to be in a mix of personal and business uses. Your personal tax point person keeps nagging you about not being able to do the subtraction of the taxes involved in your car due to your rampant negligence in using the car for just one type of purpose. Chances are, you haven’t taken time to try and understand how using a personal car for work, or a business car for personal use can change the expenses of your small business.
In case you didn’t put enough effort into knowing before today, using your car for your business can actually help your personal life by deducting some taxes from your expenses. This seems only right in that there are times of emergency, you really needed to bring or use that car of yours. This doesn’t mean however that if you use your car most of the time for work, that your personal use is somehow deducted as well.
The expense deduction (that I believe goes to your small business) is determined based on mileage. Yes, that means you must keep a keen eye on how much you actually use for the business, when it is that you do. There are two classifications as to the use of your car mingling with work. They are for business and for commuting business use covers moving from between business locations; while commuting covers moving between your regular place of residence and your regular place of business. Unluckily for all of us however, using the car for commuting does not allow for deduction in expenses. So like I mentioned earlier, extensive use of your car for work will not get around the little things.
Now that you know how to count your mileage for business and personal use, please do take the effort to do so. This will help keep your taxes right, and the one doing your taxes from ripping his hair out in frustration.