Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. You might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when
you use the vehicles predominantly (more than 50 percent) for business,
you drive more business miles than your spouse, and
the vehicles have closely aligned adjusted bases.
The allowability of multiple vehicle use is made clear in both IRS Publication 463 and IRS Form 4562.
Several tax court rulings have upheld your right to claim business deductions on multiple vehicles within the same tax year.
What the Courts Say About All This
Acceptance of the multiple-vehicle strategy has come not just from the IRS but also from the courts. In at least three cases, the Tax Court has upheld a taxpayer’s right to claim business deductions on more than one vehicle during the same tax year.