Understanding Automobile Expenses
As a small business owner, keeping track of your automobile expenses is crucial for maintaining accurate financial records. Whether you use your vehicle for business purposes or have a company car, understanding how to properly calculate and deduct mileage expenses can save you money come tax season.
The Basics of Mileage Deductions
When it comes to deducting automobile expenses for your business, the IRS offers two main options: the standard mileage rate or actual expenses. The standard mileage rate is a set amount per mile driven for business purposes, while actual expenses include things like gas, maintenance, insurance, and depreciation.
Calculating Your Mileage Expenses
To calculate your mileage expenses using the standard rate method, simply multiply the number of business miles driven by the current IRS rate. For 2021, the standard mileage rate is 56 cents per mile. Keep detailed records of your business mileage, including dates, destinations, and the purpose of each trip to support your deduction in case of an audit.
Benefits of Working with a CPA in Trinity, Florida
Navigating the ins and outs of automobile expenses can be overwhelming, especially for small business owners who already have a lot on their plates. That’s where a local CPA in Trinity, Florida, like Albert CPA, can help. We specialize in helping businesses maximize their deductions and minimize their tax liabilities, saving you time and money in the long run.
Let Albert CPA Handle Your Accounting Needs
In addition to assisting with automobile expenses, Albert CPA offers a full range of accounting services, including bookkeeping, payroll, and sales and income tax preparation. Whether you’re a small business owner or an individual in need of tax assistance, we have the experience and expertise to help you achieve your financial goals. Contact Albert CPA today to schedule a consultation and see how we can support your financial success.
