There always a tax added to whatever the business or purchase we do in our day to day life. Be it a bakery business or even driving, you basically will have to pay tax no matter what. Be it driving your own vehicle or even driving for someone else, you have to make sure how to deal with income tax if you are a business driver for safety purposes. There are many ways to handle and carry a good records to avoid any trouble from the income tax. Below are some of the useful tips that will help you out with.
Keep a good record of the driving history.
It’s always best to keep a good track of the driving records. Every tax consultant Sydney will advise having a Clean and proper driving records. First and the most important thing you need to do while you want to take the full advantage of tax deduction for driving business is a good record. Since u do not want to trigger any IRS audit, fines and penalties as well.
Expenses that you can and can’t deducts
There are certain taxes that you are able to deduct and unable as well. You can basically deduct expenses for business purposes. However, you cannot deduct any kind of personal driving costs. There are certain expenses that IRS tax agent specially mentions that you don’t make your business with driving related to. The expenses that you spend for painting and advertising about your car and driving around it. Cost for the places that you park your car at and more.
Think about the tax saving in leasing or buying business car
When it comes for purchasing a car for business drive, you have to think whether the business owner should buy a car for lease for business driving. When it comes for leasing a car for business, it may not bring the same tax benefit as you own a car. However, there are some types of leases that can have tax benefits.
Who should own a business car, the employee or the company?
If you are to buy a car for a business purpose, you can get some good tax advantages. But the question is, who should buy the car? The employee or the business. However there are certain pros and cons it both the cases. Since the car that’s used only for business purposes are allowed for tax deduction.