Driving Your Way Towards Tax Savings

By Paul Sponaugle Monday, February 14, 2011

If you have a single member LLC, then there's a good chance the vehicle you drive "on the clock" is the same car you drive "off the clock." If a separate work vehicle is not a viable option, then writing off expenses on your personal vehicle is a great opportunity for tax savings, but like all tax regulations, it’s not as easy as it sounds.

The IRS states that you need to record every deductible mile you drive. So, unless you want to strap a clipboard to your steering wheel and start writing down the mileage to and from every work destination, you should check out Bonnie Lee's article, "How to Write Off Your Vehicle Expense."  Bonnie Lee is an Enrolled Agent representing taxpayers in all fifty states, at all levels within the IRS. Her article offers some tips for some basic record keeping that could prove to be invaluable when trying to trace back those "business miles" come next tax season.

 

Disclaimer

THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.

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