Whether you are
an entrepreneur or the owner of a large company there are a few things you
should know about using a vehicle for business.
Besides insuring the car, you
have been trying to find ways to get money back on your taxes. Have you been
trying to write off 100% of your leased vehicle, only to find that you can
deduct a percentage and not the whole enchilada? Nonetheless, we thought we
would give you some hints on some things you should know when using a car for
business.
So you just
purchased a pickup truck for your landscaping business. The first thing you will want to do is to
call two very important people. First
call your Tax Preparer or accountant then call your Insurance agent. You will want to check with your agent for
the following:
1. If you should take out a higher liability
insurance.
2. If you should have a commercial policy and
what is the difference between that and higher liability.
3. If you have employees driving your vehicle
should you carry a special policy for them? Who is covered?
Now that we have
figured out what to ask the insurance agent, what do we ask the
accountant?
The accountant
will tell you to keep a log of everything.
This would be perfect if you had a GPS that logged your every move, but
that’s just not practical. You also
have to be realistic about using the vehicle for personal use as well as
business use.
To determine the business-use percentage for a mixed-use
vehicle, divide the business miles by the total miles driven, for example,
7,000 (business miles)/10,000 (total miles) = .70, or 70 percent.
If this doesn’t work then on January 1st in big
red letters on your log sheet or calendar write odometer and then write the
mileage. After you have logged that then write in big red letters odometer to
remind yourself when you need to re-log the mileage. This beats the heck out of keeping a log
every time you make a trip to the office supply store.
These are just a few areas to consider when using your car
for business. With the right accountant
or tax prep person and a good insurance agent your company vehicle should be
ready to go to work, with you behind the wheel!
Ask us about our lease programs for tax deductions.
Great post. I was checking constantly this blog and I'm impressed! Very helpful info specially the last part :) I care for such information a lot. I was looking for this particular information for a long time. Thank you and best of luck.
ReplyDeleteHere is my website; how to get a boy to like you
I've been exploring for a bit for any high quality articles or blog posts in this sort of area . Exploring in Yahoo I finally stumbled upon this website. Reading this info So i'm glad to express that I have an incredibly
ReplyDeleteexcellent uncanny feeling I discovered exactly what I needed.
I so much undoubtedly will make sure to do not
put out of your mind this web site and provides it a glance regularly.
my website - travel
continuously i used to read smaller content which as well clear their motive,
ReplyDeleteand that is also happening with this article which I am reading here.
Stop by my web site; apartment rentals san francisco
Simply want to say your article is as surprising. The clarity on your publish is simply spectacular
ReplyDeleteand that i could assume you're a professional in this subject. Well with your permission let me to grasp your RSS feed to keep updated with approaching post. Thank you 1,000,000 and please keep up the gratifying work.
Also visit my blog post moodle.tstboces.org