I use my personal vehicles for business. I drive 500 miles a week average. I also transport product and employees in my vehicles. My boss only pays for gas. I have put 60,000 miles on my BMW the last year and a half. Can I write off my vehicle or get any kind of compensation for this?
As a result of the Tax Cuts and Jobs Act, starting for tax years beginning after Dec. 31, 2017, a number of Miscellaneous Itemized Deductions were suspended. One of them is Unreimbursed Business Expenses, which is normally where this would have fallen. For federal purposes, you will not be able to get a deduction. However, you still may be able to claim the deduction on your state return, as most states have not eliminated the deduction for unreimbursed business expenses. Consult with your tax preparer to see how this might affect you.
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Answered by: Chad Schweighart, CPA, is an accounting manager with Gift & Associates in Mechanicsburg, Pa.