Most people are aware that they can take a mileage deduction when they drive their car or other vehicle for business. However, it is also possible to deduct certain types of non-business driving.
If you have more than one car in your household, are you better off if you drive just one for your business or drive two? When it comes to driving deductions, two business cars are usually better than one.
The IRS scrutinizes the mileage deduction because many taxpayers abuse it. The most common reason people lose this deduction is lack of adequate records. If you face an IRS audit, make sure your mileage log meets the IRS’ requirements.
Whether you sell or trade in a business vehicle can have a big impact on your taxes. Let’s dive through the options on what to do when it’s time to sell the car you use for work.