Running a business means keeping an eye on every dollar, and one of the most overlooked tax-saving opportunities comes from something you likely use every day: your vehicle.
In a recent podcast conversation with Creative Advising’s very own CEO, Steven Gabrielsen, and host Jarrod Fassio, they discussed how business owners can leverage IRS vehicle write-offs to maximize their tax returns. You can watch the full clip here to hear Steven break down the details firsthand.
Understanding Vehicle Deductions
If you use a car, truck, or SUV for business purposes, the IRS allows you to deduct certain expenses associated with that vehicle. There are two main ways to claim these deductions:
- Standard Mileage Rate – For 2025, you can deduct 67 cents per business mile (the IRS updates this rate annually). This method simplifies record-keeping since you only need to track your mileage.
- Actual Expense Method – You can deduct the actual costs of operating your vehicle for business, including:
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Gas, oil, and maintenance
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Insurance
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Lease payments or depreciation
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Registration and taxes
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Interest on vehicle loans
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Your deduction is based on the percentage of business use. For example, if 70% of your driving is for business, you can deduct 70% of your total expenses.
Bonus Depreciation & Section 179
As Steven explains in the podcast, larger vehicles such as SUVs, trucks, or vans over 6,000 pounds gross vehicle weight qualify for Section 179 deductions and bonus depreciation. That means you could potentially write off the entire purchase price of the vehicle in the year it’s placed in service (subject to limits and business use percentage).
This strategy can lead to tens of thousands of dollars in immediate tax savings, but it’s crucial to work with a tax professional to ensure your deductions meet IRS requirements.
Record-Keeping Matters
The IRS loves documentation, and so should you. Keep a detailed mileage log, receipts, and records showing how your vehicle is used for business. Apps like MileIQ or QuickBooks can make this easier, ensuring you’re ready if the IRS ever comes calling.
Real Savings, Real Strategy
Vehicle deductions aren’t just about saving money; they’re about strategically reinvesting in your business. Whether you’re upgrading to a new work truck, investing in a company car, or leveraging your current vehicle, understanding these deductions can help you make smarter financial decisions all year long.
Ready to Take the Next Step?
Smart financial strategies start with informed decisions. If you’re ready to make the most of your business vehicle deductions and optimize your tax return, contact us to get started with a smarter accounting approach today.
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