• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Keep track of business driving use

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. In the past, I’ve done a lot of business driving in my car: about 25,000 miles a year. But because of gas prices, I’ve cut down this year. Will this cause any problems? G.P., via e-mail

A. Maybe. If you’re deducting actual expenses instead of using the standard mileage rate (58.5 cents per mile for 2008), you must recapture some of your prior depreciation deductions if your business use for the year drops below 50 percent. Plus, you can use only straight-line depreciation this year. Keep an eye on the business-versus-personal percentage to avoid this tax trap. Tip: Once you begin deducting actual expenses for a vehicle, you can’t switch to the standard mileage rate in a later year (but you can do it the other way around).

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/7256/keep-track-of-business-driving-use "

Leave a Comment