Tax Deductions: Income-Related Car Expenses

In anticipation of a promotion, I've been reading up on tax codes in an effort to decrease my taxable income

For instance, I just read a section about business-related expenses and specifically, an owned or leased car write off

I was unaware that you could write off your car for investment or work-related costs. Apparently there are two methods you may use and in rare circumstances you may qualify for both:

1. Standard Mileage Deduction- The gov't's rate for standard mileage deduction is 56.5 cents per mile. I have a 12k miles/year lease. Since I only use my car for work, my deduction is just over $6,700

2. Depreciation & Expenses- This deduction includes the cost of gas, oil changes, insurance, lease, tires and registration. I have no idea what this number is for me, but I'd be willing to bet it's >$6,700


I figured I'll use the standard mileage deduction as that would save me much hassle of digging through all my credit card records to add up all my car expenses

I have one question though- for either of these two deduction methods, I assume I must show proof, right? Must i mail to the IRS a copy of my lease agreement (for standard mileage) or receipts of all car-related expenses (if I use the latter method?)



Please share all of your tax-deduction "secrets" here

You're gonna get one or the other or most likely part of both, it's not the things you deduct, it's the total amount in the end.

We use the standard mileage deduction here. That works out better for us rather than keeping track of every expense since we own a prius. Plus the car is used for non-business purposes as well.

We keep track of odometer readings daily in a log book and keep all gas station receipts for the proof of mileage.

You should realy talk to a tax accountant , for business it's always worth it

the last thing you want to do is be audited, if it happens with a accountant at least their insurance/lawyers can help

charity donations , are always a big help for me. I find junk on the roadside and haul it to goodwill for the recipt's