In anticipation of a promotion, I've been reading up on tax codes in an effort to decrease my taxable income
For instance, I just read a section about business-related expenses and specifically, an owned or leased car write off
I was unaware that you could write off your car for investment or work-related costs. Apparently there are two methods you may use and in rare circumstances you may qualify for both:
1. Standard Mileage Deduction- The gov't's rate for standard mileage deduction is 56.5 cents per mile. I have a 12k miles/year lease. Since I only use my car for work, my deduction is just over $6,700
2. Depreciation & Expenses- This deduction includes the cost of gas, oil changes, insurance, lease, tires and registration. I have no idea what this number is for me, but I'd be willing to bet it's >$6,700
I figured I'll use the standard mileage deduction as that would save me much hassle of digging through all my credit card records to add up all my car expenses
I have one question though- for either of these two deduction methods, I assume I must show proof, right? Must i mail to the IRS a copy of my lease agreement (for standard mileage) or receipts of all car-related expenses (if I use the latter method?)
Please share all of your tax-deduction "secrets" here
For instance, I just read a section about business-related expenses and specifically, an owned or leased car write off
I was unaware that you could write off your car for investment or work-related costs. Apparently there are two methods you may use and in rare circumstances you may qualify for both:
1. Standard Mileage Deduction- The gov't's rate for standard mileage deduction is 56.5 cents per mile. I have a 12k miles/year lease. Since I only use my car for work, my deduction is just over $6,700
2. Depreciation & Expenses- This deduction includes the cost of gas, oil changes, insurance, lease, tires and registration. I have no idea what this number is for me, but I'd be willing to bet it's >$6,700
I figured I'll use the standard mileage deduction as that would save me much hassle of digging through all my credit card records to add up all my car expenses
I have one question though- for either of these two deduction methods, I assume I must show proof, right? Must i mail to the IRS a copy of my lease agreement (for standard mileage) or receipts of all car-related expenses (if I use the latter method?)
Please share all of your tax-deduction "secrets" here