How to Claim Gas & Car Repairs on Taxes

There are certain rules that apply that you must qualify for in order to be eligible to claim gas and other car repairs on your federal income tax return. Be sure to check into the laws surrounding these deductions so that you can be sure that you qualify. If you do file this deduction you should keep your receipts in the case of an audit.

• You must use your car for business purposes in order to be eligible for deducting your gas and other car repair expenses. This is the most important requirement for this type of deduction. The gas that is covered should be for business expenses such as going to and from the office or other work related activity in order to qualify for this deduction.

• You need to save your receipts for all auto related expenses such as vehicle registration, maintenance, gas and repairs as well as lease payments if you are leasing your car. All of these items are deductible through your federal taxes as long as the vehicle is used as a business car.

• You will need to determine how much of the cars use is for business expenses For example if you use the car for business purposes 75 percent of the time. Then you would need to determine what this percentage works out to and that is the amount that you can claim on your tax deductions.

• For example, if your car related expenses for the year were $5,000 and you use this vehicle for business use 75 percent of the time, you would be eligible to claim a deduction of $3,750 for your auto related expenses on your tax return.

• Submit all of your documentation that backs up your figures with your income tax return. It is best to send in this information up front so that you do not have to worry about being audited by the IRS later.