Entrepreneurs who drive cars, trucks, vans, or SUVs for business can deduct part of the vehicle purchase price from their taxes. The purchase price is typically deducted over one to five years using a process called depreciation. Three methods for calculating car depreciation are the special depreciation allowance, modified accelerated cost recovery system (MACRS) depreciation, and the Section 179 deduction.
Regardless of which car depreciation method you choose, we recommend using tax software or relying on a tax professional to make sure you’re filing is correct. Tax software like TurboTax can calculate car depreciation and check for other business deductions. You can get started with TurboTax for free and pay only when you are ready to file.
Learn more at: https://fitsmallbusiness.com/car-depreciation-deduction/
By William Perez on January 7, 2019