One of The forms you are looking for is 4562 it is for depreciation on your vehicle the other is sch C Line 9 Car and Truck expense see pg two item IV. There are a couple ways to figure cost you can use the 37.5cents a mile or you can also use actual cost if you keep good enough records, of course you use the one that benefit you most. Everything related to the expense of your vehicle in relationship to your income is deductible.
Example:
If you spent $4000. in gas, repairs, ins, lic. plates etc. on your car in a year and you use your vehicle 80% for business and 20% personal use then your deduction for sch. C line 9 would be
$ 3200.
If you decide to take the 37.5 cents a mile and you put 15,000. miles on your vehicle then your deduction would be $4,500. based on the 80-20% usage. You also can depreciate the vehicle too. I would suggest you find a good CPA to do your taxes for you if you make a mistake it could cost you way more than a CPA..
Good Luck hope this helped. |
