Tax Rules for Vehicles

Author: Barbara Weltman

This course will cover the tax rules for cars, light trucks, and vans.

Publication Date: September 2021

Designed For
Practitioners looking for an overview on automobile expenses and deductions.

Topics Covered

• Expenses and deductions available for business use of vehicles
• Depreciation
• Leased vehicles
• Dollar Limits
• Standard mileage rate
• Reimbursement and deductions for business use of a personal vehicle
• Substantiation requirements
• Recordkeeping requirements
• Personal use of a business vehicle
• Valuation rules
• Tax breaks for purchasing a personal vehicle
• Donating a vehicle to charity

Learning Objectives

• Describe the limitations on deducting depreciation for business vehicles
• Identify the situations in which personal use of a vehicle is tax deductible
• Recognize how to explain the tax incentives for purchasing certain types of vehicles
• Identify the maximum depreciation deduction for 2021
• Recognize what is not treated as a non-personal use vehicle exempt from the dollar limits and substantiation rules
• Describe the standard mileage rate per mile for business driving in 2021
• Identify correct statements regarding a personal vehicle is destroyed in a storm and insurance proceeds exceed its basis

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None