Comments on: Tax deductions for using personal car for business? http://www.whatcanideductonmytaxes.com/tax-deductions-for-using-personal-car-for-business.php Personal income tax deductions explained. Mon, 07 Feb 2011 18:14:50 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Ryan M http://www.whatcanideductonmytaxes.com/tax-deductions-for-using-personal-car-for-business.php/comment-page-1#comment-207 Ryan M Fri, 23 Jul 2010 04:47:17 +0000 http://www.whatcanideductonmytaxes.com/tax-deductions-for-using-personal-car-for-business.php#comment-207 The IRS approved rate is .505 per mile. You can claim this rate LESS what you receive from your employer for miles driven or .155 as an reimbursed business expense. Keep a daily log of all miles driven and all reimbursements received by your employer. The IRS approved rate is .505 per mile. You can claim this rate LESS what you receive from your employer for miles driven or .155 as an reimbursed business expense. Keep a daily log of all miles driven and all reimbursements received by your employer.

]]> By: Judy http://www.whatcanideductonmytaxes.com/tax-deductions-for-using-personal-car-for-business.php/comment-page-1#comment-206 Judy Fri, 23 Jul 2010 04:47:17 +0000 http://www.whatcanideductonmytaxes.com/tax-deductions-for-using-personal-car-for-business.php#comment-206 You will still need to keep detailed records of your mileage, split between business miles, personal miles, and commuting miles. You have a choice whether to claim the flat mileage rate, 50.5 cents per mile for 2008, or actual car expenses, but in either case can only deduct the portion that's for business miles. Whatever that comes to, you'll then subtract the total reimbursement, and only deduct the rest. As an employee, you'll use a form 2106 to show the deduction, and can only deduct the amount that's over 2% of your adjusted gross, and then only if you itemize. You will still need to keep detailed records of your mileage, split between business miles, personal miles, and commuting miles. You have a choice whether to claim the flat mileage rate, 50.5 cents per mile for 2008, or actual car expenses, but in either case can only deduct the portion that’s for business miles. Whatever that comes to, you’ll then subtract the total reimbursement, and only deduct the rest.

As an employee, you’ll use a form 2106 to show the deduction, and can only deduct the amount that’s over 2% of your adjusted gross, and then only if you itemize.

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