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Claiming Vehicle Expenses

2021 – 10/25 Business owners can generally deduct the ordinary and necessary costs of doing business if they keep good records. To claim vehicle expenses, a contemporaneous log must be kept showing odometer readings, dates, business purpose of trips and miles driven. One married couple deducted actual auto expenses of $28,520 for the wife’s work as a personal trainer for the tax year in question. That represented 97% of the total use of the family’s only car, which she drove for work-related trips. She kept no contemporaneous mileage logs or other details to support the business use. The IRS limited the vehicle expense deduction to $8,898 and the U.S. Tax Court agreed. (TC Memo 2021-111)

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