Can I Write Off Parking Tickets if I Drive For a Living?

October 27, 2017

If you use your car to make a living, you need to get the most on your taxes. It doesn’t matter if you drive for a ride-sharing service, make deliveries or use your car in your business, you should take the maximum deductions. A Los Angeles tax specialist can help you understand which deductions you’re entitled to take and what kind of records to keep.

What Is Deductible?

• Standard mileage from the time you leave your driveway until you drop off your last passenger

• Parking, tolls and other expense incurred when picking up and dropping off customers

• Sometimes, you can deduct a portion of the lease payment if you lease your vehicle

• Repairs, tires and regular maintenance might be allowable

These rules apply if you are self-employed, not if you go to an employer each day. If you work for an employer, the rules are different, but there are deductions for using your vehicle for work purposes. Ask us about what is deductible and what isn’t.

What if You Get a Ticket?

Unfortunately, you cannot deduct the price of a ticket from your taxes, even if you got the ticket when you were on company business. The IRS does not allow tax deductions for penalties paid to the government, state, local, federal or foreign. Only necessary expense can be deducted. Keep good records of your mileage and expenses to take the right deductions to lower your taxes. Ask your tax expert agency for advice when it comes to paying taxes and taking deductions.

Talk to a Tax Professional

It’s a good idea to make an appointment with an Encino tax advisor outside of tax season to learn more about which deductions and credits you can take in your business. Contact us for a consultation to maximize your returns and minimize your taxes.