Automobile

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Actual Expenses of Car

When you use a car for business, you may deduct the mileage expense by using either the standard mileage rate or the actual expenses of maintaining the vehicle. If you take the actual expenses, you can deduct the depreciation, gas, oil, insurance, tires, licenses, repairs, etc. If you choose to take actual expenses when you first start using the car for business, you cannot change to the standard mileage rate deduction.

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Business Mileage

If you use your car for business purposes, you may deduct a standard mileage rate for unreimbursed mileage. The 2014 standard mileage rate is 56 cents per mile. Be sure to keep a written record of your total mileage and business mileage.

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Fuel Cell Vehicles

The maximum credit base for fuel cell passenger automobiles and light trucks is $4,000 for tax-years 2010 through 2014.

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Other Mileage

In addition to business mileage, did you know that other types of mileage are deductible if you can itemize? If you are involved in charity or volunteer work for a a qualified nonprofit organization, you can deduct your mileage at 14 cents per mile. The mileage to and from a doctor or dentist's office is deductible at 23.5   cents per mile.

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Passenger Automobile Limits - Trucks & Vans

The depreciation limit for trucks and vans (including certain sport utility vehicles) used as passenger automobiles that were placed in service in 2014 is $3,460 ($11,460 if using special depreciation). This limit must be reduced if the business use is less than 100%.

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Section 179 Expensing - Sport Utility Vehicles

The maximum section 179 deduction is limited to $25,000 for certain sport utility vehicles (SUVs) weighing more than 6,000 pounds, but not more than 14,000 pounds.

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