Small Biz Owners Often Overlook This Important Deduction
Washington, D.C., February 27, 2012 – Business expenses come with the territory when you are an entrepreneur. Some expenses, however, can be easy to miss come tax time because they do not show up in your business checkbook.
Here are a few tips from the National Association for the Self-Employed (NASE) to remember in regard to deducting expenses for the business use of your automobile:
Calculating Business Use of Car:
- Standard Mileage Rate (51 cents for 2011)
- Actual Expense Method (calculate total costs of maintaining and driving your car, then multiply by the percentage of business miles to total miles driven in that car)
“Almost all small-business owners use their personal vehicle for business and too many of them forget to take a deduction for that use,” says NASE National Tax Advisor
Keith Hall. “Don’t forget the deduction and don’t forget to maintain a good log of the miles that you drive, since that mileage log is critical in calculating and supporting the deduction.”
The NASE iPhone application TripAlly tracks, calculates and records miles driven to create the ultimate tax-deduction mileage log. Whether you need to track miles for your small business, charitable contributions, for employee reimbursement, or simply because you want to know, TripAlly can help. Download TripAlly at the iTunes App Store.
About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org. |