Do you operate your business as an S or C corporation?
Do you drive for corporate business a vehicle titled in your personal name? If the vehicle is in your personal name, how do you avoid losing some or all of your business-use vehicle deductions?
By claiming the business-use deductions on this vehicle the wrong way, you can lose all of your vehicle deductions to the alternative minimum tax (AMT). If you are not subject to the AMT and you claim the business use of the vehicle on your personal tax return, you will lose at least some and perhaps all of your business-use vehicle deductions.
On the other hand, by deducting that personal vehicle the best way, you realize the tax benefits of all your rightful business deductions including, when applicable, Section 179 expensing and bonus depreciation.
In this article, you learn not only how best to claim tax deductions on the personal vehicle that you use for corporate business, but also how to treat the vehicle deductions on your corporate and personal tax returns. ... Log in to view full article.