Automobile and Truck Expenses

Overview

Many of the business activities reported by taxpayers annually include the use of motor vehicles of one kind or another, whether in the form of a semi-trailer used by a long-haul trucker in the course of transporting freight from one state to another or a small sedan used by a salesman calling on clients in an assigned territory. In these and other cases, ordinary and necessary expenses associated with vehicles used in the course of conducting business are deductible from business income.

The purpose of this course is to provide a comprehensive and detailed review of the rules surrounding automobile and truck expenses, including the types of expenses-including depreciation-that are eligible for deduction, the associated record-keeping requirements, the handling of the sale or other dispositions of vehicles, the reporting methods that should be used, and the available tax credits.

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Regulator 

 

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Objectives

After completing this course, you will be able to:

  • identify the types of work-related car and truck expenses that may qualify for deduction by a taxpayer and the available general methods that may be made to claim those expenses
  • identify the three types of deduction that a taxpayer may qualify to claim under the heading of depreciation for a car or truck that the taxpayer uses for business purposes
  • identify situations and circumstances where a taxpayer may have to recognize a gain or loss on the disposition of a vehicle that has been used for business purposes
  • given appropriate taxpayer records, correctly calculate the taxpayer's available deduction for motor vehicle expenses and identify the correct form(s) for reporting the deduction to the IRS
  • identify the main characteristics of the vehicles that may qualify for each of the three motor vehicle tax credits that were available during the 2022 tax year

Tax Year: 2022

Designed For:

Tax professionals working to refresh or expand their knowledge regarding rules governing deducting automobile and truck expenses


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Course Information

Adding additional credit may change exam requirements.

Prerequisites:
General understanding of individual tax law
Advanced Preparation: None