Business Use of a Vehicle

As a business owner, you have to wear many hats. You are responsible for the day to day running of the business. You need to keep your customers happy, but you are also in charge of taking care of all the bookkeeping and other important tasks that make the business run successfully and help you to pay off your taxes each year. But there are many deductions that you can choose that help to reduce the amount you have to pay on your tax bill each year.

One deduction that you should consider is the use of a business car. Whether you have a vehicle that is used only for work or you use your own personal car to conduct some business ventures, you are able to deduct some of the expenses, such as gas and maintenance, to using this to help your business. You will need to keep some good records along the way, but you will be surprised at how much this is able to help your tax bill at the end of the year. If you are ready to learn about deducting your business vehicle or any of the other business expenses you can qualify for, make sure to contact the professionals at HCS today!

Simple Deduction

The simple deduction is often the choice that business owners will make because it makes things so much easier. Rather than having to fight with keeping all the receipts and figuring out what you are able to deduct or not, you just have to learn the standard deduction amount per mile and then multiply it by the amount of miles that you traveled while you were on business. Remember that you are not allowed to deduct the amount that you drove that was not part of your business trip.

This is a really easy formula to handle and as long as you can keep good records of how many miles you traveled while working on business, you will be able to get it done. You are not going to make as much on this method from your tax return since you are just doing the basic formula rather than going with one that includes the exact price of gas all year long as well as all maintenance fees.

If you are interested in finding out how much you are able to deduct on your tax return for both the simple and the complex deductions, make sure to contact the professionals at HCS to get started today.

Complex Deduction

The complex deduction is another route that you can take when it comes to your taxes. This method allows you to get more back, but you are going to have to be really good at keeping track of records and receipts to ensure you are able to claim everything. With this option, you will be able to deduct the exact amount that you pay for gas, based on business use, some of the repair costs, and other costs of traveling for your work.

This option is going to take some time to figure out. Rather than using a simple math equation to get a good estimate, you will need to have all your receipts in order and go through everything to come up with the deduction. If you have a lot of trouble keeping track of your receipts or you are worried that this is going to be too much work, consider going with the simple method. It does save you more money on business expenses though so if you can keep good receipts and do this method on your own, or hire the professionals at HCS to help get this done the right way.

Figure Out Percentage  of Use

Before you start claiming your use of a vehicle for business purposes, make sure that you figure out how much of the time you use the car just for business. Unless you purchase a car that is just for the business and never have it leave the lot other than to do work for your business, you will have to share up the amount of use between business and personal.

Figuring out how much is used for personal use and how much is used for your business can sometimes be difficult. You may not be able to pick out the exact amount, but round it up. If you use it only for business during the week and then for some personal travel on the weekend, you can figure it out pretty easily. If you keep good receipts, you will find that you can come pretty close to a good number to make things easier. If you need help figuring out these numbers, make sure to contact the professionals at HCS to find the right percentage to deduct on your business taxes.

Running a business can be a big deal. You have a lot of different things to keep in order and even figuring out your business use of a car just adds more hassle to your daily life. If you would like to learn more about using your vehicle for business purposes or some of the other deductions you can get as a business owner, make sure to contact Kevin Jenkins at HCS, LLC in North Richland Hills, TX. Our professionals will be able to work with you to save money on all of your business expenses at the end of the year. Contact us to get started.