Although everyone has one, this does not mean that owning a car doesn’t come with tons of expenses, especially taxes. Today they surely are a necessity, and a lot of money goes on taxes, maintenance, and buying it in the first place. Vehicles like the ford f150 have become one of the choices most Americans opt for when buying a car. And for a good reason.
The world loves winners and this vehicle is one of the models that has not known about failure for many years. Ever since it was introduced back in 1948, this pickup has changed the way the audience viewed workers ’vehicles several times and set standards that competitors had to follow. For 2018, the F-150 received its first refreshments since the 13th generation debuted seven years ago. Some will say madness, others will say courage, but there is no doubt that Ford is allowed to make bigger changes and always keep its leading position.
Since the American people like it so much, it is exactly the reason they are trying to find ways to write off taxes, as much as possible. You’ll be surprised to find out there are a couple of ways to deduct these, as it is stated on taxsaversonline.com. This article you are about to read has assembled all of the best ways you can do this. Read until the end and find out.
1. Turning your vehicle into a hybrid
As hybrid cars are becoming increasingly popular, the government has decided to offer attractive credits to those who want to turn their Ford into one. This commodity is offered to those who have purchased their vehicles after September 2009 and can go up to 7000 USD. Driving a car like this will also cut off your fuel and maintenance expenses since these are said to require less maintenance. Not to mention they are environment friendly.
2. Charitable contribution
If you assess that your ford isn’t going to run much longer, the way it was supposed to, and there is no point in trying to save it, there’s an option that will cost you less. It considers donating it to charity, instead of trying to make a profit by selling it. Selling is sometimes too much of a hassle as well. It involves coping with a bunch of questions asked by people who might be interested in buying it, those who want to bargain for the price, and others. Not to mention how time-consuming this is.
When you decide to donate it, what happens? Automatically you are entitled to its market value deduction. Moreover, if you donate it to some NGO, your transport troubles will be saved, since many of them are more than happy to come and pick it up from you.
Regardless of whether it is a personal or a business application, these deductions apply to both. What you need to pay attention to is the receipt. In most cases, charity can issue these, and the market value of the vehicle you’re donating is stated on them.
3. Another option of converting the vehicle
If you wish to go green in as many aspects of your life as possible, here’s something you might be interested in. There are electric drive conversion kits that are available for buying, and all you need is a skillful mechanic you trust to turn your car into an environment-friendly one.
You may want to check with the mechanic if your Ford F150 is in enough good shape to go through the conversion process. It’s not an old car, but depending on whether you’ve been using it a lot, and not paying attention to maintenance, it can be worn off. So, check if this investment is worth it or not. If tour Ford is brand new, this investment will definitely cut the expenses of the fuel.
4. Business use deduction
This option doesn’t only apply to those who own a business. Even if you work as a freelancer, but own a vehicle, you can still be entitled to this deduction. It’s a super-smart idea for small entrepreneurs. All you need to do is segregate personal use and business use.
There’s one thing you need to pay attention to, though. It’s keeping track of the mileage and collecting the fuel receipts. This way, you will be able to easily distinguish expenses you’ve made for business and those you made for personal use. Business use in this case is tax-deductible.
5. Business expenses that failed to be reimbursed
If by any chance you have been forced to drive your own car in order to achieve the goals set by your employer, you’re interested in this. Expenses made like this are sometimes ignored by the employer, but there is a way to reimburse them. You can claim these on your tax deduction.
You need to be aware of the fact that the IRS updates fuel costs, and maintenance costs per mileage regularly because you will be using these to estimate your deduction.
6. Fleet deductions for small businesses
Your yearly tax deductions, as part of the operating expenses, can be influenced if you have a vehicle you use exclusively for work (and if your business falls into the category of small businesses). Although you should keep in mind that the expenses made for maintenance do not qualify as a deduction. Hence, it is important to keep a clean record on this, because the IRS will ask for it.
Another catch you need to know about these write-offs is that only vehicle that has been used the same year as they were bought qualify for these. And you have to prove they have been used more than 50% of the time. No doubt that this type of ford qualifies for these deductions, but if you have been planning on buying another vehicle, you want to check first if it’s on the list stated by the IRS or not.