Many business tax deductions go overlooked by small business owners that can help them bring home more money at the end of the year. Some tax code provisions can be used to yield personal benefits such as combination business trips and vacations.
Auto Expense Deductions
If you have a business that owns its own vehicle or set of vehicles, you will be able to deduct at least some of the costs that you accumulate to keep those vehicles on the road and running. Small business owners are able to deduct the standard mileage rate for each mile driven in company vehicles, in addition to business-related tolls and parking fees. For the year 2013, the standard mileage rate stands at 56.5 cents per mile driven for business vehicles. In order to qualify for the standard mileage rate deduction, you must use the deduction in the first year the car for the business is used. Additionally, you cannot use the standard mileage rate deduction if you have claimed another type of auto expense deduction, known as the claimed accelerated depreciation deduction, in past years, or if you have taken the Section 179 deduction for the vehicle. By using the accelerated depreciation deduction, you are able to deduct the depreciation value of the vehicle after it was used as a new car for the business.