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Is a car tax deductible to the business that owns it?

Always
25%
Most of the time
40%
Sometimes
8%
Depends
25%
Not sure
1%
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Question: Is a car tax deductible to the business that owns it?
Top Answer (40% of 60 votes): Most of the time.

Answer: Most of the time
Explanation: If you have detailed records, and a second car for non-business use, you can often deduct automobile expenses for your business use.
Blue Bell Wealth Advisors
Answer: Most of the time
Explanation: Generally a car tax is deductible to the extent the vehicle is used for business purposes. This can be determined based upon vehicle mileage or percentage of business use related to the specific automobile.
OnTarget CPA
Answer: Most of the time
Explanation: Vehicles owned by the company can be depreciated and vehicle expenses can be deducted as well. However if you have a lease you can not depreciate the vehicle since you technically do not own the vehicle.
Rood Financial Services
ProMatcher
Answer: Most of the time
Explanation: If the car is used for business purpose, and is ordinary and necessary to conduct business, then it is deductible. Learn more at myirstaxrelief.com
Mike Habib, EA
Answer: Most of the time
Explanation: Simply having a business own a car purchased by a business does not make it deductible. The IRS says the expense must be "ordinary and necessary". To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business.
CPA Tax Advisors, Inc
Answer: Most of the time
Explanation: A car is tax deductible to the business if it is necessary for the business. For example picking up items for inventory and delivering services, etc.
MT Gonzalez Accounting Services
ProMatcher
Answer: Depends
Explanation: If a car is used for business at least 50% of the time then you may be able to deduct the expenses of the car. However, you need to analyze whether it is best to use the actual or the mileage method.
JFB Financial Services Inc
Answer: Always
Explanation: If the car was purchase/leased by the business and it is 100% for business use, you can deduct 100% of all the expense. Or you can only deduct the % used for business. Also make sure you either deduct actual expense or mileage expense
Capstone Financial & Tax Service
Answer: Sometimes
Explanation: The car must be leased or owned under the company and is used for business purposes not personal.
Tucker & Associates Small Business Accounting LLC
ProMatcher
Answer: Always
Explanation: A business can claim the expense for a company vehicle.
Ayesha Tax SERVICE
Answer: Depends
Explanation: You can deduct some of the costs of your car when you use your car for business. You have two options for deducting your vehicle expenses: standard mileage rate or actual expenses, such as gas, depreciation, etc. In addition, the additional expenses one can deduct: interest on a car loan, parking fees and tolls for business trips, personal property tax you paid when you bought the car (included in registration fee), based on its value.
Virtual Ventures LLC
Answer: Depends
Explanation: A car purchased for use in a business has certain tax advantages for the owner, whether that owner is the business or an employee. But before you buy that car, consider the pros and cons of having the company or the employee owning the car. There are tax and other factors to consider in this decision. In this situation we'll look at ownership by a corporation vs. ownership by an employee.
Block Small Business
ProMatcher
Answer: Most of the time
Explanation: Depends on how and how much it is used and in what capacity.
Strothman and Associates
Answer: Most of the time
Explanation: Some automobiles which are owned by a business entity do get used for personal purposes. This practice may occur as a matter of perquisites, or necessity.
H. Jackson Business Service, Inc.
Answer: Most of the time
Explanation: There are a few factors that go with this. Is it titled in the business, how is the business set up, who pays the insurance, what is it used for? All these questions and a few more need to be answered to make sure that the business gets to take the deduction.
Your ATP
ProMatcher
Answer: Depends
Explanation: Yes a car can be used for business purposes. But when a car is used for personal purposes then it can't be claimed.
Ensisinfo Inc
Answer: Depends
Explanation: According to the IRS the costs of operating a car, truck or other vehicle in your business are tax deductible. In other words, if a company owns a vehicle and allows employees to use it for business purposes, the costs of its operation are deductible for the business. If you use your own vehicle to perform tasks necessary for your job, the cost of its operation for business purposes is tax deductible on your personal tax return.
HERO Employer Services
Answer: Always
Explanation: As long as it's in use by the business the vehicle is deductible.
BYG Bookkeeping Services
ProMatcher
Answer: Depends
Explanation: It has to be used exclusively for business purposes in order to be deductible.
Dudgeon's Bookkeeping
Answer: Depends
Explanation: Depends on if it is purchased solely for the business or if it is a personal vehicle being used for the business. If it is used solely for the business, it is advised that it be registered under the business name.
Digital Excellence, LLC, Admin +, LLC, Jenny's Basketique, LLC
Answer: Most of the time
Explanation: It may depend on the percent of business usage of the vehicle.
Rumbold Financial & Tax Advisory
ProMatcher
Answer: Sometimes
Explanation: If it is used for a business purpose it is deductible. If there is mileage used for personal reasons, that percentage of use is non-deductible.
Goldburd McCone LLP
Answer: Most of the time
Explanation: If you use your car for personal reasons- NO. If you use your car for business, write down the mileage, the service on your car, as well as compare it with your car insurance. You need to figure your car expenses from these items.
Burgis Successful Solutions
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