Ep. 92 | Untangling Business Vehicle Deductions (the facts)

Teaching Tax Flow: The Podcast

This episode of the Teaching Tax Flow podcast dives deep into the complexities of car and truck deductions for businesses. Joined by a seasoned tax professional, the discussion centers on the eligibility and nuances of vehicle expense deductions, explaining what they are and what they aren't.

In a detailed conversation with tax expert Shawn Flattery, listeners will learn who can claim vehicle expense deductions and the criteria involved. The episode explores the distinctions between standard mileage and actual expense deductions, the nuances of the 6000-pound vehicle rule, and the considerations between buying vs. leasing business vehicles. Through practical examples and a touch of humor, Shawn simplifies the complexities of tax laws, helping business owners make informed decisions that could lead to significant tax savings.

Key Takeaways:

• Eligibility Criteria: Only business owners can deduct vehicle expenses, and the vehicle must be used at least 50% of the time for business purposes.
• Standard Mileage vs. Actual Expense: Understand the difference between standard mileage rate deductions and actual vehicle expense deductions, and when to use each method.
• 6000-Pound Rule: Learn about the significant tax advantages for vehicles with a gross vehicle weight rating of over 6000 pounds and how this can affect your deductions.
• Buy vs. Lease Considerations: Get insights into the tax implications of buying versus leasing a business vehicle and which option might offer better tax benefits.
• Tax Credits for EVs: Discover the specific tax considerations for electric vehicles, including the impact of the $7,500 credit on depreciation limits.

Notable Quotes:

1. "If you're using the vehicle for 50% or more for business, then we can start talking about depreciating and taking actual costs." - Shawn Flattery
2. "It's really the date that it becomes available for business use is the magic day and year. Thus, that depreciation starts and you can start taking those deductions." - Shawn Flattery
3. "A vehicle more than 6000 pounds...expands out how much depreciation you can take in the year." - Shawn Flattery

Episode Sponsor:
Strategic Associates, LLC
Roger Roundy
www.linkedin.com/in/roger-roundy-86887b23

• (00:04) - Understanding Car and Truck Deductions for Business Owners
• (04:34) - Tax Benefits of Business Vehicle Depreciation and Expense Deductions
• (14:27) - Tax Benefits of Vehicles Over 6000 Pounds
• (19:59) - Buy Versus Lease: Tax Benefits and Considerations
• (28:08) - Understanding Vehicle Tax Deductions and Misconceptions