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Truck or automobile expenses, your business can benefit.

Updated: Jan 19, 2022

Business owners can deduct expenses for commercial truck / vehicle use. The car or truck can be owned by the company or the employee, you can use miles or deductions of actual expenses to determine the amount of deductions for business purposes only. Personal driving expenses and travel expenses are not deductible. There are two methods of deduction.

Standard mileage allowance - The standard IRS mileage deduction - Business mileage deduction, which changes every year, is the easiest to use. Simply multiplying the business miles used in the year and using that amount on the appropriate tax form. The IRS has some requirements to use this method.

  • Actual Expenses

  • Vehicle registration fees

  • Licenses

  • Gas

  • Insurance

  • Repairs

  • Tires

  • Oil

  • Garage rent

  • Vehicle titles

  • Depreciation each year

Keep good records - In order to deduct business car / truck expenses, you must be able to provide proof of business driving. This is true even if you are taking the standard deduction. You should also be able to show the amounts you paid to drive the business. You must keep a record like receipts, checks, invoices. All business driving expense records must be accurate and timely. Make sure your records are complete, showing all information, including date, location, mileage, actual expense, and business purpose.

Consult with a qualified tax advisor Consult a tax professional before making any decisions that may affect your business tax return or spend money for the sole purpose of saving on taxes. Be sure to select someone who can help you all year long, not just at tax time. Note: These tips are not intended to be tax tips, they just give you some tax saving ideas. Every business is unique, and tax laws change frequently.


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