Whether you have a beat up old jalopy, a mostly plastic import or a snappy new luxury ride - there is no denying that your car is an essential part of your life. Yes, I know, you hate to admit how much you depend on it but if we take a step back you will see just how much it really plays a role in your life.
Beyond the day to day hustle and bustle, never ending stream of youth league practices, mind numbing errands and annual trips down the highway there are other reasons why the ole' automobile is important. This is especially true for independents that, for the most part, heavily rely on their car as a means to get them from project to project, or client to client.
So what happens when the family van becomes the corporate car service?
Many people fail to realize, or more so fail to take advantage of, the deductions you can take for business related mileage. In fact the always-generous IRS extends deductions beyond just business to also include medical needs, moving needs and charitable hours. If you operate a business that relies heavily on personal transportation, you could be saving a good chunk of change that could then be reinvested into the car itself such as tires, oil changes, tune-ups or you could get a racing stripe and a sweet spoiler on the back.
Regardless, the IRS has put together a nifty little chart to help guide you through the deduction process.
Learn how to calculate a cost-based bill rate with our new, easy-to-follow video tutorial.
News and notes for independent professionals and their clients. This is the October 17, 2016 edition.