I was told something that you can claim a vehicle if it is above 6,100 lb GVW? I'm not sure how we can work with vehicle payments if it is used for both personal and business.
Brian • Multi professional
If you drive your personal vehicle for your freelancing work then you can take a portion of your vehicle expenses such as Vehicle Registration fees, gas, vehicle insurance, car wash, vehicle repair and maintenance etc as business deductions under Schedule C deductions. In the FlyFin app, you can mark all vehicle related expenses as deduction and we will apply a % based on business use at the time of tax filing. You can also opt for the standard mileage rate of 56 cents per mile driven for business use in 2021. At the time of tax filing, FlyFin CPA will calculate and compare your vehicle deductions by both these methods and select the most appropriate method for you.
Dixon is one of the best tax experts from the United States. He has an experience of 28 years in the field of corporate finance. Before FlyFin, Dixon had served as the Tax Head at KPMG, NJ.