How to Write off a Car for Business
- 1). Place a small folder in your glove compartment. Each time you fill up on gas, get an oil change, renew your inspection or pay for any sort of service related to your car, file a receipt for the expense in this folder until tax season.
- 2). Create a spreadsheet to keep track of all the business-related errand you run in your car, such as stops at the bank, the post office or the copy center.
- 3). Create a separate spreadsheet to track the miles you drive to and from work, as well as to and from any other business-related location, every day. Include columns for the destination and leaving point, the purpose of the trip, the reading on your odometer at stop and start points, and the total mileage your drove. Develop the habit of filling this information in every time you use your car.
- 4). Bring all of the information you collected in the previous three steps in to your accountant when it comes time to pay taxes.
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