Tax Tip : Write off your Auto Expenses

Many people do not take full advantage of deductions for their vehicles, and many times it's because they don't know what they are allowed to deduct. It depends on whether you will be using the standard mileage deduction or actual expense method. Using the actual method might be more beneficial if your vehicle incurred a lot of expenses during the year.

Expenses you can deduct using the actual method include car insurance, DMV registration fees, tolls, parking, gas, oil changes, tune-ups, tires, maintenance, etc.

You usually won't know which deduction method to use until the end of the tax year, so it's best to just keep a journal of all vehicle activities. To read more tips about which auto and travel expenses you can deduct from your Schedule E, take a look at RealTaxTips.com. It's a forum for real estate investors to learn how others are saving money on their real estate investments, and it's an easy way to get prepared for taxes.


Niman Singh
Community Relations Director, TReXGlobal.com
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