- 1). Save all of your receipts. You cannot claim an expense that you cannot prove you spent money on. Save every receipt for fuel or repairs that you want to claim. You also need to document owning your vehicle and its specific use. Vehicle expenses that the IRS allows you to deduct include depreciation, lease payments, registration fees, licenses, gas, insurance, repairs, oil, garage rent, tires, tolls and parking fees.
- 2). Use your car for business purposes. According to the IRS, acceptable businesses purposes include "traveling from one work location to another within the taxpayer's tax home area," traveling to visit customers, "attending a business meeting away from the regular workplace" and "getting from home to a temporary work place when the taxpayer has one or more regular places of work."
- 3). Determine what percentage of time you use your vehicle for business. You can only claim deductions on the business usage. For example, if your expenses on your car were $4,000, and you figure that you use your car for business 75 percent of the time, then you can deduct $3,000 of your car's expenses on your taxes.
- 4). Complete tax form 2106 or 2106-EZ and itemize your deductions on your Form 1040 to claim vehicle tax deductions when filing your taxes. You will need to submit your documentation along with your tax paperwork.
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