Question:
I drive 34 miles daily to work. This is the major use of my car. Besides the cost of gas, can I deduct cost of car insurance? Repairs? IRS allows $0.60/mile when computing costs for a business. Can I just use that number instead?
Answer:
Thank you for your question.
Taking the cars insurance off as a business expense will depend on why you have the car. If you would have the car regardless, because you need to get around and do your personal things, since you would have this expense regardless, you can’t take it off as a business expense. However, if you need the car, (or the extra car), because of your commute to work, then having the car in the first place is a business expense, and you can deduct the insurance cost as a business expense.
The repair expenses would depend on how much wear and tear the car has in comparison to the amount of your personal use of the car.
I can’t relate to the IRS’s calculation because I don’t know what they are taking into consideration, and what their calculations are.
Hashem should send you and your business much hatzlocha.
Sources:
B’orach Tzedakah 12-15
