Every small business owner wants to know how to legally minimize his or her tax obligations. You know that the tax code allows you to deduct costs of doing business from your gross income. You are taxed on your net business profit. How to maximize your deductible business expense to lower your taxable profit then?

What are deductible business expenses? You would think the IRS has a list, but the Internal Revenue Code provides little detail other than “There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business”.

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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  »