Owning a Commercial Vehicle

If you own a small business, one of the many benefits could be a nice size tax deduction for business expenses.  And one business expense that many companies and self employed individuals find themselves with is transportation costs.  If you own a small business, you should definitely look into using your current vehicle, buying a car or leasing a car so that you can not only conduct business effectively, but also benefit from the tax deductions.

Here are some tips:

Talk to Your Account Regarding Owning a Commercial Vehicle
Generally speaking, tax deductions can vary widely so it is always best to talk to you accountant or financial adviser on the benefits that will directly affect you.  For instance, many businesses can deduct mileage, tolls, the cost of maintenance and in some cases even the cost of the vehicle, insurance, etc.

Own Your Current Vehicle, Lease or Buy
Another interesting piece of information that one should know is that the IRS sometimes offers incentives in the form of deductions for one to either buy a vehicle or lease a vehicle.  The reason being that in some cases (remember to talk to your accountant), your monthly payment for owning the vehicle or leasing it can be deducted on your taxes each year.  Obviously this kind of deduction can save you thousands of dollars.

Commercial Insurance and Registration
While there are definite benefits when it comes to taxes, be aware that a commercial vehicle usually requires specific types of vehicle insurance and registration with your municipality or state.  In many cases, commercial insurance and registration will be more costly, however the good news again is that you will probably be able to write off these expenses on your taxes- making the bite of these costs easier to handle.