Vehicle Expenses for Business use

Vehicle expenses are frequently one of the greatest small business tax deductible items. Tax rules for claiming car and truck expense are very tricky. The first thing is to make sure you keep a good records to calculate your vehicle expense deduction. A mileage log is a good example to keep the record. You must back you up to your deduction if you are audited. If your automobile is used for both business and personal use,

 » Read more about: Business Use of Vehicles: Standard Mileage vs. Actual Expenses  »

Do you have to file a return? What if you’ve picked a name, filed the papers for an LLC, etc. but haven’t started the business and have no income for the year? Whether or not you have to file any returns depends on the circumstances.

Please keep in mind that the discussion below assumes that the business has no sales or expenses. There is no threshold for reporting sales. Even if you have only $1 of revenue you must file a return reporting the income.

 » Read more about: Filing Requirements for Inactive Businesses  »