Every driver knows how expensive owning on a vehicle can be. You can recoup some of that money spent, however, if you are aware of deductible car related expenses and use your car for business related driving. Keep complete records of everything you spend on your car and be prepared to claim these valuable vehicle deductions come tax season. 
Operational Expenses
The operational expenses of a car that you use for business purposes are tax deductible. Operational expenses include important car maintenance work, auto fuel costs, and unplanned repairs. You may also be able to deduct interest accrued on the car’s financing and insurance costs as part of the operational expenses.
This deduction is easy to calculate if you own a car that is used exclusively for work. In that circumstance, the entire amount spent on the car’s operation is tax deductible. The operation cost of a car that is used for both business and personal purposes is only eligible for a partial deduction, based on the percentage of business driving.
Business Related Mileage
The IRS assigns a tax deductible monetary value to miles you put on your car as a result of business related driving. You cannot make an educated guess at the amount of business miles you drive throughout the tax year. In the event of an audit, the mileage deduction could be disallowed if you cannot prove the automobile mileage you reported. Record the reading on your car’s odometer before you leave and as soon as you arrive.
Depreciation
The car you use to get to and from work is also a financial asset that rapidly depreciates. This particular deductible car expense involves a highly complex formula from the IRS that determines if the variable percentage of your car’s depreciate qualified for the claim. Unless you have a firmly educated grasp of this deduction, seek the assistance of a tax professional before filing. Keep in mind, the more complicated tax deductions can raise a red flag and trigger an audit.
Lease Payments
There are two ways to claim a tax deduction on the monthly payments made to lease a car you use for work. You can combine this deduction with the already deductible operational expenses or claim a separate deduction just for the leasing fees. A qualified tax professional can help you decide which car lease deduction strategy is the best fit for your specific situation.
To fully take advantage of every tax deductible car expense you qualify for, keep careful records and seek the advice of a tax professional before filing.
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