Business tax planning

Test Your Tax IQ: Deducting More Than One Business Vehicle

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.


What Happened

What Court Said


IRS allocates mileage between business use and personal use on three different cars during the same tax year. 

Court has no problem with and actually relies on the allocation to decide this case on other grounds. 

World of Service

Nutrition consultant claims deductions for business use of three cars during the same tax year.

Court okays deductions for 50 percent of gas, repairs, depreciation, and maintenance for each car.


Horse breeder claims depreciation on five vehicles in Year 1 and six in Year 2. 

Court has no problem allowing depreciation of each vehicle but cuts amount of allowable depreciation for lack of documentation. 

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Retirement Tax Deductions

2022 Last-Minute Year-End Retirement Deductions

Last Minute Tax Deductions Retirement Deductions The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are four things to

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2020 Last-Minute Section 199A Tax Reduction Strategies

With all that’s happened in 2020, it’s easy to forget about your Section 199A deduction.

You may remember that the Tax Cuts and Jobs Act (TCJA) gave many pass-through businesses the Section 199Adeduction as a no-effort, do-nothing 20 percent tax deduction based on defined business income.

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