Tax season is upon us once again, and for many people that means stress and worry. Gathering together all the year’s finances can be enough to drive you up the wall. Luckily there are always some silver linings, and in the case of buying a car, they may be more significant than you thought. As a matter of fact, you may not know that there are a number of tax deductible vehicle expenses that will save you money on your tax return. But there are!
Particularly if you own a small business and you use your car for business purposes, you may be entitled to significantly more tax deductible vehicle expenses than you are aware of. Here is a short list of potential tax deductions you may be able to take.
1. State Sales Tax
If you bought a new car this year, chances are you paid a big chunk of state sales tax upon purchase. That’s the bad news, but the good news is this: your small business has the choice of deducting either state sales tax or state income tax from the return, so you may have the opportunity to deduct a significantly larger amount, depending on your business.
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