J.K. Lasser's Small Business Taxes 2018

CHAPTER 9Car and Truck Expenses

1. Deducting Car and Truck Expenses in General
2. Actual Expense Method
3. Standard Mileage Allowance
4. Leasing a Car for Business
5. Arranging Vehicle Ownership
6. Employee Use of an Employer-Provided Car
7. Vehicle Trade-In
8. Trucks and Vans
9. Credit for Plug-In Electric Vehicles
10. Reimbursement Arrangements
11. Recordkeeping for Vehicle Expenses

Alert

At the time this book was completed, Congress was considering important tax changes that could affect 2017 tax returns and planning for 2018. Check the online Supplement in February 2018 at www.jklasser.com or www.barbaraweltman.com to see what changes have been enacted and when they are effective.

Americans are highly mobile, and the car is the method of choice for transportation. If you use your car for business, you may write off various costs. The IRS reported that on 2014 returns (the most recent year for statistics), car and truck expenses were the largest category of deductions for sole proprietors (only the cost of goods sold, which is not relevant to service businesses and in any event is not a separate deduction category, was larger). In order to nail down deductions for these expenses, you must carefully observe certain recordkeeping rules. There are 2 methods for deducting costs: the actual expense method and the standard mileage allowance. In order to use either method, you must maintain proper records for business driving.

For further information about deductions with respect to business use of ...