How To Write Off Your Car As A Business Owner

How Business Owners Can Write Off The Use Of Your Cars

Love them or hate them, most of us have cars, and we often rely on them for business use. A common question at Anderson is, “How do I write off my car if I'm a business owner?” 

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Depending on how much you use the vehicle in your business, there are several ways to do this. Plus, if your usage is over 50 percent, there's a whole other set of rules, depending on the type of car, where we may suggest you write off the entire cost of your vehicle in one year. Most people use their cars for business, but our usage is more sparing than you think. 

And sometimes, if the vehicle is a rental, and you are writing off miles periodically, you can use whatever the federal applicable rate is. In this instance, it is best to track your miles literally. We suggest using an app like Mile IQ, and then you can just write yourself a reimbursement check at the end of the year. The rate was usually around 58 cents a mile and increased to 67 cents per mile in 2024.  You don't have to report the reimbursement as taxable income, and the business gets to write it off.

To learn about the tax-advantaged options available for automobile deductions and others you may have coming, schedule a complimentary 45-minute Strategy Session with a helpful, seasoned Anderson Advisor. You’ll learn about how to get unlimited access to attorneys, tax professionals, and CPAs and receive a free blueprint to chart your tax-saving path.