Gas prices biting hard at your wallet?
Bite back by writing off auto costs this April!
If you’ve gone to the gas station lately, you probably noticed something. Your wallet is probably a bit emptier due to sky high gas prices as events in the Middle East hit close to home. A gallon of gas now averages $3.38 in the US and $3.71 in California. If your car is your lifeblood to getting around, you know how bad pain at the pump can feel.
But thanks to the tax code you can get a bit of that money back when you write off certain automobile-related expenses at tax time.
You can write off your automobile expenses for business purposes. Just keep records of the tolls you’ve paid as well as parking fees, gas oil, tires, insurance, registration fees, and depreciation (or lease payments) that can be attributed to the portion of your total miles driven for business purposes. But make sure it’s for an actual business purpose, such as driving to a business meeting or to meet with a client – commuting from home to work every day doesn’t count.
The cost of driving to get medical treatment for you or a dependent can also be written off, as well as the cost of using your car for charitable purposes.
Did you move over the past year because you changed jobs? The cost of driving while moving to a new residence can be tax deductible as long as your new workplace is at least 50 miles farther from your old home than your old workplace was from your old home, according to the IRS.
As the price of gas rises, so do the cost of many other items we buy. The tax code is filled with little deductions that you can take advantage of every April, and every one of them helps us to lessen the pain at the pump. Resolving your tax debt is another way to lessen the pain in your wallet. If you owe more than $10,000 or have years of un-filed tax returns, our team can get you back on your feet and ease away some of the IRS’s bite.