Auto expenses - If you use your car for business, you can deduct your business expenses one of two ways. If you use the actual expense method, you keep must records of all auto-related expenses. At the end of the year you add up all the expenses and calculate what percentage of total miles the car was driven for business. You can multiply this percentage times all your auto expenses to get your auto expense deduction. If so, you must keep proper records.
Depreciation is a complicated topic.
It is best to have an accountant review your return. Getting expert help may pay for itself in tax deductions you did not know you were allowed to take. It may save you money in the long run to buy an hour of an accountant s time in the very beginning. Take your business records or some information on what you do. Ask how it is best to keep track of what you need.