As a business owner, it’s important to explore every savings opportunity, including strategic tax deductions such as vehicle expenses. In this episode, CEO Danielle Hayden guides listeners through determining if vehicle deductions are applicable to their business, and how to choose the right tax strategy to maximize these deductions. She outlines two methods for claiming vehicle expenses as business deductions: mileage versus actual expenses.

Most importantly, Danielle provides a clear roadmap for leveraging these deductions based on your business entity type, sharing an actionable framework for implementing a tax strategy that aligns with IRS guidelines and optimizes potential tax benefits. Tune in now to learn more!


Key Takeaways:

  • Tax deductions for vehicle expenses depend on how often business owners use a vehicle for business purposes.
  • Understand that deductions are tax savings that reduce taxable income, not a direct cash benefit.
  • Consistent tracking and strategy of vehicle use are essential for claiming deductions.
  • Adding a wrap or logo to a car does not qualify the vehicle as a full-time, 100% deductible advertising expense.
  • Reimbursement depends on entity type: S-Corps would benefit from accountable plans, while LLCs have some flexibility in how they expense vehicles on their tax return.


Topics Discussed: 

Introduction to vehicle expenses as business deductions (1:20)

Vehicle Deductions: Mileage vs Actual Expenses (3:40)

Advantages of the mileage deduction strategy (5:01)

Vehicle deductions strategies for different business entity types (6:58)

Bookkeeping and the reimbursement process for vehicle deductions (8:15)

This week’s homework: actionable steps to implement a vehicle deduction strategy (9:36)



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