Tax season is upon us once again, which means many Americans are searching for ways to take advantage of available tax deductions. Tax deductions are all over the place, and may even include your car insurance. Depending on their situation, some drivers are eligible to write off car insurance in Tampa, FL. This post will cover the scenarios in which you could claim your auto insurance as a tax deduction.
If you use your car for business purposes
The main way drivers get tax breaks is if they use their personal vehicles for business purposes. Before you get too excited, driving your car to work each day doesn’t count as using it for business purposes! If you’re self-employed and use your car for your business, however, that qualifies for a writeoff. You can also get deductions if your employer doesn’t plan on reimbursing you for expenses related to driving your car for business purposes.
In addition to insurance-related deductions, you can possibly write off the costs of gas, repairs and even parking. You’ll just need to prove that all of these costs are directly related to business use.
If you operate an Airbnb
Operating a vacation rental home might not be considered your full-time job, but you may be able to claim some vehicle tax deductions for it. Any time you make a trip out to the property to perform maintenance, clean it or let a guest in, you’re allowed to claim the associated costs on your taxes.
It’s important to note that the savings might not be all that much if your trips aren’t too frequent, but something is better than nothing if you ask us!
If you suffered vehicle loss or theft
Having your vehicle stolen or getting into a nasty wreck that totals your car is nobody’s idea of a good time. But, there’s a bright side: you may be able to claim a car insurance tax deductible in Tampa, FL if either scenario happened in the past year. As long as the accident wasn’t your fault and you’ve filed an insurance claim, you may be eligible to take this deduction.
If you’re an Uber or Lyft driver
Many states require Uber and Lyft drivers to carry special rideshare driving insurance that goes into effect each time they start driving for the service. Drivers with this rideshare insurance can deduct that entire premium from their taxes.
Assuming you use your personal vehicle, you can calculate your deductible by dividing your monthly car insurance payment by the percentage of time you use for ridesharing. So, if 50 percent of your monthly driving is for Lyft or Uber, you can deduct 50 percent of your monthly car insurance premium from your taxes.
Do you have adequate coverage?
If you’re underinsured or if your car insurance is too expensive, come see our team at Affordable Car Insurance Tampa. Even if you’re not in a position to write off your car insurance in Tampa, FL, we’re dedicated to helping our customers get the lowest possible car insurance rates. Call us today to get a quote or learn more about our different policies.