IRS car expenses

When the time comes to file your tax return, you start to have doubts about what you can include in your expenses and in which category. Most car-related expenses can be deducted, but in different categories.

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Maintenance and repair of motor vehicles

In this category you can declare invoices, as long as they contain your tax identification number (NIF). The IRS Code calls this deduction the "Invoice requirement deduction" (article 78-F).

The deduction calculations for this category correspond to 15% of the VAT paid on the purchase of goods or services, up to a maximum of €250 per household.

Don't forget to ask for your NIF on invoices for mechanics, maintenance and repair of your car, including parts and accessories and even tires and the respective change service (as long as they are purchased together).

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General family expenses

This is where most day-to-day expenses fall, such as the electricity bill. As far as your car is concerned, you can include car insurance, inspection and the purchase or installment bill itself in this category.

The deduction is made on 35% of the amount paid with a maximum of €250 for each taxpayer, i.e. in the case of a couple it will be up to €500. Single-parent families deduct 45% of the amount paid up to a maximum of €335.

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Source: ECONOMIAS

Translated with DeepL.com