Even your personal vehicle can be considered your work vehicle, part of the time, especially if you’re self-employed. Whether you already have a vehicle and want to know more about what it can do for your business, or you’re now in the market for a business vehicle, there are some things you want to keep in mind.
When it comes to your work vehicle, especially if you also use it for personal means, you want to keep track of a lot of things, from repairs to where you’re driving it to and from. Here are some things you need to know if you want to get the most out of your business automobile.
How Often Do You Drive It For Business?
If you don’t have a vehicle that is dedicated to business, you’re going to want to keep track of the percentage of time you do use it for business. Keep it in writing. You’ll definitely want this when tax time rolls around, especially if you use Schedule C for your business.
You’ll already be saving your receipts (see the next section), so make sure to write on them that it was for business use.
Saving Receipts For Taxes
These days, receipts for your gas purchases are not enough. You need to make sure that you are tracking your mileage, not just saving receipts for the cost of gas. However, it can be convenient to jot that info down on your receipt.
When you get repairs on your work vehicle you also want to hold onto those receipts. This is work that is being done in order to keep your business going, so it can definitely help you out in the expense department when it comes to tax time.
Investing In A Work Vehicle
Even when you first put a new vehicle into service for your business you are getting yourself a tax break. Keep your paperwork so that you have it for your taxes. This is even if it’s a vehicle that is doing double-time as a personal vehicle. Part of the expense in buying it will still be work related.
How are you distinguishing this as a work vehicle? You may want to invest in a decal of some sort that can turn your vehicle into an advertisement for your business. It’s a cheap way to start marketing locally.
Work vehicles can vary in size and usage. If you need to haul a lot of large and heavy equipment you may want a truck or utility van. But as a traveling musician, doing things solo, you may want something fuel efficient that just fits you and your guitar. Don’t be afraid to take some time and shop around to find the best vehicle for your work day!