There are numerous situations or scenarios where auto insurance is and is not deductible. For instance, an auto insurance is deductible if your car is for business purposes only. If you use your vehicle as a personal car, you cannot qualify. But it might not be clear as to what is referred as a business car. Here are some scenarios where you might deduct your auto insurance from the taxes.
What is the Auto insurance tax-deductible?
However, there are important tips you need to understand before deductions. If you normally drive your vehicle to work that does not mean it is tax deductible. If your work is from 8 am to 5 pm, your car is not important to your daily operations. Hence, you are do not qualify to write off any expense related to your car. Also, you cannot write off the car insurance expense if your boss or business refunded you the costs.
Can you write-off the auto insurance if you use the car for pleasure and business?
Always keep the taxes record safe
How to deduct auto insurance
Always consult an accountant if you are not sure