Tax Deductable Question?

Question

Say You have an internet business, are cars and gasoline tax deductables?

Answer 1

Sure, the business portion of your car expenses are deductible expenses just like any other expenses you incur by running your business.  

There are two methods.  First, you can deduct a standard mileage rate (50.5 cents/mile for the first half of 2008, 58.5 for the second half) which is what most people do because all you have to track is your business miles.

Or you can deduct the business percentage of your total car expenses.  For example, if  you use your car 30% for the business, you can take 30% of all gasoline, oil changes, tires, insurance, maintenance, yadda yadda.  The downside to this method is that you have to keep very good mileage records of business miles AND personal miles AND all  your car expenses.

Answer 2

Yes... but you have to have proof of mileage use, buy a milage tracker so you can write it down and show when you do your taxes

Answer 3

Only if used for business purposes -- see a tax accountant.

Answer 4

Auto expenses would be deductible for business miles.  For example if you have an ebay store you could deduct miles driving to an office supply store to buy shipping materials, and driving to the post office to mail items sold.