Suppose you damage the car you normally use for business in an accident. The car will be in the shop for several weeks for repairs. Since you had a business trip planned for the end of the month, you’ll probably postpone or cancel the meeting.
Strategy: Go ahead with your original plans. Just use one of your family’s other vehicles for the business travel. Even though it’s not your regular business car, you can still deduct your business-related expenses.
Example: Let’s say your teenage daughter will be away at summer camp, so she won’t need her car. You drive a total of 1,000 business miles in her car while your car is in the shop. Plus, you pay $150 in tolls and parking fees during your business travels.
If you use the standard mileage rate for this “second” car, you can deduct a total of $635 for 2007 (48.5 cents per mile, plus $150 in tolls and parking fees), in addition to your regular business car write-offs.
It doesn’t matter that the car isn’t used for business the rest of the year. Alternatively, you may deduct the actual expenses attributable to the business use of your daughter’s car, although this will involve more record-keeping.
Note that you can claim a relatively small for your daughter’s car if you change the actual expense method.
Tip: No rule prohibits deducting expenses for more than one business vehicle so long as its use is legit.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7094/salvage-an-extra-deduction-for-business-travel "