Deducting more than one business vehicle

By
Industry Observer with Green Krist CPA PLLC 34463

Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle.

You might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when

  • you use the vehicles predominantly (more than 50 percent) for business,
  • you drive more business miles than your spouse, and
  • the vehicles have closely aligned adjusted bases.

The allowability of multiple vehicle use is made clear in both IRS Publication 463 and IRS Form 4562.

Several tax court rulings have upheld your right to claim business deductions on multiple vehicles within the same tax year.

Here’s an example of how you might benefit: An attorney, Mel, utilized his and his wife’s vehicles for business purposes. By strategically alternating between using the two cars for business trips, he increased his deductions by up to $32,460 without spending more money or driving more miles.

Green Krist, CPA  specializes in assisting taxpayers with IRS and North Carolina Department of Revenue issues in the greater Raleigh, North Carolina area.

Comments (3)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Mel. Proper planning within the rules are a benefit many do not always explore. Thanks for the tip. Enjoy your day.

Oct 15, 2023 05:06 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

That's a good tip to know!

Oct 15, 2023 06:26 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kelly, I did have two cars for 20 years, and used both for business.  My CPA said I only could use one.

Dec 17, 2023 11:59 AM