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Claiming Car Expenses |
by Tom Copeland
- You can claim a car trip as a business expense if the primary purpose of the trip is business
- You must keep adequate records to prove that you made a business trip
- Receipt
- Mileage log
- Cancelled check
- Debit/credit card statement
- Written record
- Calendar notations
- Photograph
- Two methods to claim car expenses
- Standard Mileage Method
- Actual Expenses Method
- Standard Mileage Method
- 56.5 cent per mile (2013)
- Can also claim parking, tolls, and business percent of car loan interest and personal property tax
- Actual Expenses Method
- Can claim business percent of all expenses associated with the car, including gas, oil, repairs, insurance, depreciation, car loan interest, etc.
- Business percent is calculated by dividing the number of business miles by the total number of miles
- 2,000 business miles divided by 10,000 total miles = 20%
For further information see Family Child Care Record Keeping Guide and annual Family Child Care Tax Book and Organizer.
This handout was produced by Think Small (www.thinksmall.org)
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