Tax Rules for Vehicles

Author: Barbara Weltman

CPE Credit:  1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC

This course will cover the tax rules for cars, light trucks, and vans.

Publication Date: September 2021

Designed For
Practitioners looking for an overview on automobile expenses and deductions.

Topics Covered

  • Expenses and deductions available for business use of vehicles
  • Depreciation
  • Leased vehicles
  • Dollar Limits
  • Standard mileage rate
  • Reimbursement and deductions for business use of a personal vehicle
  • Substantiation requirements
  • Recordkeeping requirements
  • Personal use of a business vehicle
  • Valuation rules
  • Tax breaks for purchasing a personal vehicle
  • Donating a vehicle to charity

Learning Objectives

  • Describe the limitations on deducting depreciation for business vehicles
  • Identify the situations in which personal use of a vehicle is tax deductible
  • Recognize how to explain the tax incentives for purchasing certain types of vehicles
  • Identify the maximum depreciation deduction for 2021
  • Recognize what is not treated as a non-personal use vehicle exempt from the dollar limits and substantiation rules
  • Describe the standard mileage rate per mile for business driving in 2021
  • Identify correct statements regarding a personal vehicle is destroyed in a storm and insurance proceeds exceed its basis

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $49.00

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