There are two ways to deduct your vehicle expenses in the US: the IRS Method and the Actual Method. Taxbot is set to calculate auto expenses using the IRS Method. When you enter a business trip and put in the mileage, the Total Deductions amount will increase by the current IRS Business Cents per mile. If you are keeping track of your automobile expenses to use the Actual Method instead of the IRS Method, you will still be able to pull those expenses from your reports for your tax return. Please visit the Vehicle section of the Library for Sandy Botkin’s explanation of the IRS Method vs. Actual Method. In Canada, vehicle expenses can only be deducted using an Actual Method. Please check with your tax preparer for the auto rules in your area.
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