Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Grasp mileage vs. key tax breaks. #SmallBizOwners #TaxTips #BonusDepreciation

Name: Painting Biz Owners: Grasp mileage vs. key tax breaks. #SmallBizOwners #TaxTips #BonusDepreciation
Uploaded: 2024-06-27T13:15:08+00:00
Duration: 43 s
Channel: Daniel Honan
Description: In this advisory segment, the speaker explains that small‑business owners should consider not using bonus depreciation or Section 179 for a vehicle when…

27 Jun 2024 · 1 min

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In this advisory segment, the speaker explains that small‑business owners should consider not using bonus depreciation or Section 179 for a vehicle when factors such as vehicle ownership, whether the business or the individual owns the vehicle, and the proportion of business versus personal use make those deductions less advantageous. Instead, the speaker recommends the standard mileage deduction, which applies a cents‑per‑mile rate that is adjusted annually, allowing owners to avoid the complexity of calculating actual vehicle expenses. The speaker stresses the critical importance of maintaining a precise mileage log to substantiate the mileage deduction.

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when would be a time where you might not want to do the bonus depreciation or Section 179 on a vehicle? When it comes to vehicles, there's a lot of nuance and complexity. It's going to depend a lot on: do you own the vehicle? Does your business own the vehicle? Is it used 100% for business, or is there a mix between personal and business? But if you are able to use the standard mileage deduction, you don't want to figure out actual expenses. You can use a cents-per-mile formula to figure out what your deduction should be. That formula is adjusted each year. You would log your mileage, and I cannot emphasize the importance of keeping an accurate mileage log for deductions.