Travel & Entertainment
I use my car for work. What expenses are deductible?
In general the costs of commuting between a taxpayer's home and work location are non-deductible personal expenses. There are exceptions to this rule for commuting to a temporary work location. If you purchase an auto that you use for work (i.e. a salesman)you may claim the actual unreimbursed expenses or the IRS mileage allowance, whichever is higher. The expense is claimed on IRS Form 2106. There are limitations on the actual expenses that may be taken each year. In the current year, the standard mileage rate is 56.5 cents per milefor business miles driven. The maximum first year actual depreciation deduction is $11,160 if bonus depreciation claimed. Speak to your local CPA if you are commuting to a temporary work location or need guidance in your first year actual verses mileage expense election.
Need Professional Help?
If you need help with "Travel & Entertainment" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.