tax write off for vehicle(multiple rentals owned)

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Can a vehicle be a business use vehicle for a property manager(but only managing your own properties and not a licensed broker)? confused

Comments(1)

  • DaveT16th February, 2003

    Yes.

    You usually capitalize the cost of a motor vehicle you buy to use in your business. You can recover its cost through annual deductions for depreciation. There are dollar limits on the depreciation you can claim each year on passenger automobiles used in your business.

    Repairs you make to your business vehicle are deductible expenses. However, amounts you pay to recondition and overhaul a business vehicle are capital expenses.

    If you use your car for both business and personal purposes, you must divide your expenses based on mileage. Only your expenses for the miles you drove the car for business are deductible as business expenses.

    You can deduct actual car expenses, which include depreciation (or lease payments), gas and oil, tires, repairs, tune-ups, insurance, and registration fees. Instead of figuring the business part of these actual expenses, you may be able to use the standard mileage rate to figure your deduction. For 2001, the standard mileage rate is 34 1/2 cents a mile for all business miles driven.

    If you are self-employed, you can also deduct the business part of interest on your car loan, state and local personal property tax on the car, parking fees, and tolls, whether or not you claim the standard mileage rate. You can use the nonbusiness part of the personal property tax to determine your deduction for taxes on Schedule A (Form 1040) if you itemize your deductions.

    For more information on car expenses and the rules for using the standard mileage rate, see Publication 463.

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