When you have a small business, come tax time you can find yourself frantically trying to find things to write off. Luckily, there are a lot of expenses you can write off if you can prove that they were paid for out of your gross profits. And most all, car expenses are one of the easiest things to write off of your taxes, because most small companies need some sort of transportation to conduct their business. And because a car or truck is considered an essential part of operating a business, many facets of transportation are tax deductible, like using your company vehicle for basic business, medical, relocating, and even charitable purposes. Here are some ways you can deduct business car expenses on your taxes.

  1. Fuel is tax deductible if you can prove that you drove a certain number of miles for business purposes. If you or your employees are driving to the office from home everyday you can count these miles and the fuel it takes to get there. You cannot do this from the office to the home, but if you can prove that you also have an office at home you can have that route deducted to. Make sure to keep receipts and a record of miles.
  2. You can also get car insurance for small business owners. If you have a car or many cars designated as belonging to the company for official use only, you can have the insurance that protects those cars deducted from your taxes. This is because the insurance is a necessary cost in efficiently running your business.
  3. Often times you can have basic maintenance and damage repair deducted from your taxes. For many small business owners, you want to maximize the most amount of write offs you can. If you had a damaged vehicle or a vehicle that needed a tune-up, you can deduct this from your final taxes.
  4. Another great way to deduct car expenses is to dedicate a certain amount of time to charitable service. Miles and fuel can be recorded as a write off if you conducted official, charitable business using the company car. Just find a local charity in your neighborhood and spend an hour or two weekly driving to and from the office. This can be with a children’s hospital or even a nature reserve. You could even make it a collective business trip and have the whole trip be written off your taxes.
  5. Lastly, if your business has relocated more than 50 miles you can write off all the relocation costs. This can include renting the moving trucks, the miscellaneous expenses of getting there, and the fuel. For many businesses, uprooting and moving over 50 miles away can be a huge, costly event. You want to be able to write off as much as the transportation as you can so that you aren’t left paying more than you bargained for with an unforeseen tax bill. If you get creative, you can find a lot of other expenses incurred from relocating that are also tax deductible so that you can better protect your bottom line.