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Question
Can I use my personal car for my llc and can I debit the miles I drive this car for business purposes or do I need to credit my company with this car? If yes, how to do it?
AI accountant’s answer:
Yes, you can use your personal car for your LLC's business purposes, and you may be able to deduct the business-related miles driven using the IRS standard mileage rate. To do this, you should track and document the miles driven for business purposes, as well as the total miles driven for the year. When using the standard mileage rate method, you would multiply the business miles driven by the IRS standard mileage rate for that year (for 2022, it's 58.5 cents per mile). This amount may be deducted as a business expense on your LLC's tax return. Alternatively, you may choose to use the actual expense method. This method involves tracking and deducting the actual expenses incurred, such as gas, maintenance, insurance, and depreciation of your car, attributable to the business portion of your vehicle use. You'll also need to track the business miles driven and total miles driven for the year in this scenario. Keep in mind that once you've chosen a method (standard mileage rate or actual expenses) for the vehicle, you must continue to use that chosen method for the life of the vehicle, subject to certain restrictions. It's essential to maintain detailed records for both methods to substantiate your claims in case of an audit. You do not need to transfer ownership of the car to your LLC, and it's not necessary to credit your company with the car. Make sure to consult a tax professional to ensure that you're following the appropriate rules and regulations specific to your situation.
Comment from reviewer
Jacques Seys, CPA
Not Correct.
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Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

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File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

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Ask an AI Accountant

A free tool by

Question
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AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started