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If you own a vehicle and meet certain criteria, you may be eligible for one of the automobile tax deductions. These deductions offer you some relief by lowering your taxable income.
Charitable Donations
If you donate your vehicle to a qualified charitable organization, you may be able to claim one of the automobile tax deductions. If the vehicle is valued over $500, your deduction will be the final sale price of the vehicle, not fair market value. This prevents misrepresentation of the vehicle’s value, and requires the charity issue you a receipt within 30 days for proof of the sale price.
Business Deductions
You can deduct the costs of operating your own vehicle while driving to meetings and other work sites, if you are not paid for these things by your employer. This does not include commuting to work or any other personal usage of the vehicle. If you are self employed, you can deduct any automobile expenses that pertain to your job.
Employer Owned Vehicles
Employers can use automobile tax deductions to deduct the cost of keeping their company vehicles on the road. This also includes vehicles that are leased for the company, although there is a ceiling on the amount of expenses you can deduct on leased vehicles.
