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Separate Personal & Business Expenses

PLEASE keep your personal and business expenses and income separate! Not only will doing so save time and effort on your part, it will also provide an accurate snapshot of the financial condition of your business. If you have not been separating the two, no worries, it can be fixed in your books!

If your personal vehicle is utilized for business purposes, you may deduct car expenses. If your vehicle is used for both business and personal purposes, you must divide your expenses based on actual mileage. You can choose to deduct mileage or actual car expenses. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Standard mileage rates for 2019:

· $0.58 per mile driven for business purposes

· $0.20 per mile driven for medical or moving purposes

· $0.14 per mile driven for services of charitable organizations

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