Many people do not take full advantage of deductions for their
vehicles, and many times it’s because they don’t know what
they are allowed to deduct. It depends on whether you will be using
the standard mileage deduction or actual expense method. Using the
actual method might be more beneficial if your vehicle incurred a lot
of expenses during the year.
Expenses you can deduct using the actual method include car insurance,
DMV registration fees, tolls, parking, gas, oil changes, tune-ups,
tires, maintenance, etc…
You usually won’t know which deduction method to use until the
end of the tax year, so it’s best to just keep a journal of all
vehicle activities. To read more tips about which auto and travel
expenses you can deduct from your Schedule E, take a look at
RealTaxTips.com at ( http://www.trexglobal.com
). It’s a forum
for real estate investors to learn how others are saving money on
their real estate investments, and it’s an easy way to get
prepared for taxes.
Niman Singh
Community Relations Director
TReXGlobal.com
( http://www.trexglobal.com
)
FREE to Use Simple Web Tools for Real Estate Investors
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