Make Sure Your Car Is Saving You Tax Dollars!

As an INVESTOR, the vehicle expense is one of the costs you are constantly trying to curb. It seems you are always on the road. This year the mileage deduction is 55 cents per mile, and also don’t forget that you can deduct the interest on your auto loan. If you aren’t using the mileage deduction, don’t underestimate the benefits of the SUV/truck deduction, the hybrid tax credit or the strategies related to alternative fuel vehicles.
First, if you have an SUV or truck that weighs more than 6,000 pounds, you can choose to write off the actual expenses of your vehicle (rather than the standard mileage rate) and take a deduction of up to $25,000, writing off a portion of the purchase price of the vehicle that is attributable to business use.
Second, a hybrid vehicle gives you the benefits of federal and state tax credits that actually reduce your tax bill dollar for dollar, and you still can choose to write off the actual expenses of the vehicle or select the standard mileage rate.
Finally, the cost savings and tax credits related to the use of natural gas vehicles are absolutely amazing. I highly recommend you speak with your accountant or a tax advisor familiar with these strategies. Again, one of your biggest expenses as an INVESTOR is your vehicle; let’s take advantage of the best tax and cost-saving strategies possible to minimize this cost!