We've talked about vehicle deductions in previous episodes and how to take the deduction if it makes sense for your business. Essentially, all of the vehicle deductions are grounded in your understanding of how much you use that vehicle for business vs. personal use; and the only way you can document those differences is by tracking your miles!

 

When the IRS is looking to audit people, vehicle deductions are more likely to be flagged because they know you're likely estimating. Knowing how to properly track and document your numbers can save you a big headache should you ever be audited.

 

* Related episodes:

190. Live Q&A: Deducting Startup Costs in a New Business

196. How to Handle Suspicious Tax Pros

201. How to Deduct Medical Costs and Self-Employed Health Insurance

 

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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.