There’s just over one month left until the United States goes over the fiscal cliff, when Bush era tax cuts are expected to expire, and business owners in Oregon and across the United States are doing everything that they can now to avoid overpaying taxes in 2013.
One of the most common questions that business owners in the area have is Central Oregon Car Insurance tax deductible? The answer to this question is yes; if the business owner is using their vehicle strictly for business purposes, but, if the vehicle is not being used for business purposes, then expenses like car insurance are not tax deductible.
Calculate Those Expenses
Before a business owner who lives in Bend, Prineville or some other part of Central Oregon decides to calculate their expenses, they should always use the IRS standard deduction to avoid getting into trouble and paying more or less than they should on their taxes.
To make sure that they will be able to write off the use of their vehicle, a business owner should always keep accurate records of all their vehicle expenses including: fuel receipts, maintenance costs, parking pass receipts, car insurance and car payments
Write off Golden Rule
The key to success with writing off expenses is for a business owner to always specify if they are using their vehicle solely for business use or if they use it for business and personal use because, when it comes to vehicles that are being used for personal use, the IRS will expect the business owner to deduct only a percentage of their vehicle expenses (example: 60/40) rather than deducting 100% of the expenses.
Hire An Accountant, It Will Pay Off
One of the most common mistakes that business owners make in Oregon or anywhere else in the United States is that they think it’s easy for them to do all of their accounting, themselves, to save time and money it always pays off to hire a certified account who will help the business owner stay organized when it comes time to pay taxes.
To learn more about how you can save money on taxes or to get an affordable car insurance quote, contact Tye Farnsworth today at the Farnsworth Agency by calling (541) 318-8835.