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What are the pros and cons of having a business-owned vehicle versus a personally-owned vehicle? In this episode of the Small Business Tax Savings Podcast, Mike dives into the often confusing and overwhelming topic of business vehicles. From selecting, buying, and maintaining a car for business use to proving business use of a vehicle to the IRS. Mike offers up his expertise on how to make sure you’re getting the most out of your vehicle when it comes to tax deductions.
Mike covers the pros and cons of having a business-owned versus personally-owned vehicle, as well as tips for determining the business use percentage and tracking mileage.
Tune in now and listen as Mike shares his advice on how to select, buy, maintain, and write off a car for business use!
[00:24] Get The Facts On Mileage Logs And Proving Business Use
- Today’s topic is, “Unleashing Powerful Vehicle Tax Strategies for Small Business Owners”
- Mike talks about never buying a vehicle solely for tax purposes
[07:26] Determining Business Use Of A Vehicle
- The mileage log must be backed up with documentation proving the business purpose of the miles
- The need to prove business use and purpose
- Have a track record of mileage log, appointment book, and receipts
- Calculate business use percentage
[09:17] Understanding How To Deduct Vehicle Expenses
- Consider factors like mileage limits, years of use, and monthly payments when deciding to buy or lease a vehicle
- Vehicles can be in either personal or business names as long as the correct process is followed
- What are the two main options for deduction?
- If you have a leased vehicle, you must stick with the same method for the duration of the lease
[15:34] Closing Segment
- Mike shares the pros and cons of a business-owned vehicle versus a personally-owned vehicle!
- Final Words
Key Quotes
“Whether you have a vehicle that's in your personal name or your business name and you use it for business, either way, is acceptable. You just need to make sure that you're following the correct process, whichever way you do it.” – Mike Jesowshek, CPA
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
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Small Business Tax Savings Podcast