There are 2 methods you can use as a Real Estate Agent to deduct your auto expenses. Which method is right for you?
This chart may help:
IMPORTANT TAX TIPS:
- For a Car you OWN: use the standard mileage rate for the first year your vehicle was in service. After that, you can calculate both methods and use whichever gives you a larger deduction. Remember: if you use the actual expense method the first year, you must use it for the life of the vehicle.
- For a Car You LEASE: If you use the standard mileage rate for a car you lease, you must use it for the entire lease period. You cannot switch methods on a lease.
For the current standard IRS auto deductions rate click here
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Note: This is general information to help you gain an understanding of U.S. tax laws. I am not a tax attorney or tax preparer. Please consult a qualified expert when you are preparing your tax returns or making tax-related decisions.