Writing Off Your Business Vehicle
Turn Your Business Vehicle Into a Tax-Smart Asset
If you’re self-employed or run your business through an S Corp or C Corp, and your business owns your vehicle, listen up—this strategy could save you money and keep the IRS happy.
Business vs. Personal Use Matters
Let’s say you drive your business-owned vehicle 80% for work and 20% for personal use. That 20%? The IRS wants to know about it. If you’re using a corporate vehicle for personal errands, that’s considered a taxable fringe benefit, and it needs to be accounted for correctly.
What Counts as a “Vehicle”?
According to the IRS, a vehicle is any four-wheeled machine made for use on public roads. That includes:
- Cars
- SUVs
- Crossovers
- Minivans
- Cargo vans
If you’re using a company-owned truck or van, especially in fields like real estate, construction, or consulting—you’re in this zone.
Why It Matters for Tax Strategy
Improperly reporting personal use of a corporate vehicle is a red flag for an audit. But when you handle it right, you:
- Avoid IRS penalties
- Maximize legitimate write-offs
- Keep your books clean
The actual value method and lease value method are just two IRS-approved ways to calculate personal use—each with pros and cons depending on your situation.
Want to Keep More of What You Earn?
Ken-Mar Tax can help you turn your vehicle into a tax-saving asset—not a liability. Whether you’re a realtor driving clients around, a contractor with a branded work truck, or a consultant constantly on the move, we’ll help you get it right.
Related Posts:
Combine a Home Office Tax Deduction with a Heavy Vehicle for Major Tax Write-Offs
Contact Us
If you’ve been frustrated dealing with the IRS, or you just don’t want to deal with the IRS, contact Ken Weinberg to explain your situation and find out what Ken-Mar Tax would charge to handle your situation and avoid dealing with the IRS all together.
- If you have back taxes and want to know the timeline and/or costs to get your back taxes resolved
- If you own a small business and want to discuss tax reduction strategies for the self-employed
- If you’re worried your last tax expert wasn’t doing the best they could have and want a second opinion…
Contact Ken Weinberg to learn more about our small business tax consultant services and set up a free consultation by filling out the form on this page.
