What You Need to Know About Car Write-offs for Taxes

Jul 28, 2015

Car-Write-offs-for-Taxes We are more than half way through 2015, which means you have had six months to save, document, and track the write-offs for the tax season. If you haven’t started keeping track, perhaps now is a good time to do so. But what counts as a write-off?

Here are some write-offs to get you thinking about what you might qualify for.

1. Moving expenses

Did you move this year, or do you plan to do so before the end of the year. If, so you can write off some of your travel expenses. If you move more than 50 miles away, you may be able to write off each mile, toll expenses, parking expenses, and gas expenses.

2. You bought an electric car

Although you can no longer get a federal tax credit for buying a traditional hybrid, you may qualify for one if you bought an electric car. Pure electric cars may be eligible for a $7500 tax credit. Ask the dealership about the program.

3. You donated your car

If you donated your car to charity, you may be eligible for a charitable contributions write-off. Not only do you avoid the hassle of trying to sell private-party, but you are helping others as well. When you donate the vehicle, make sure it is to a reputable charity. You can get a deduction for the market value of the vehicle.

4. Driving for business use

If you use your vehicle for your job, either part-time or full-time, you may be eligible or business expense write-offs for the mileage, the purchase, and maintenance. You cannot write-off everything, and the amount of time you actually use the vehicle for business affects the amount you can write-off, but a tax professional can help you break it all up. Just track it all now so you have documentation during tax time.

This post is meant only to provide you with information about possible tax write-offs. You must speak with a tax professional about your specific situation and options before writing off expenses on your taxes.