You can use your personal car for office purposes in different ways. A number of people have converted their personal cars into home office car. Others use their personal cars as office cars but do not take into concern the business perspective behind it. First it should be understood that a business being a legal entity is separate from your personal or home needs. In most instances people do not understand the theory behind business and find themselves using their personal cars as office cars without observing business discipline and integrity. The car may be used to do jobs at the office mostly during the day. Alternatively, it can be used in the morning and in the evening for your personal transport. In many instances, this is done if the owner does not have enough money to buy another car for office use or would like to cut down transport expenses of his or her business. It can also be done as a way of cost cutting to meet your budget needs at the job place. During the day you can convert it into an office car.
However, incase you are using your personal car as an office car at the same time; there are a a good number of factors you should put into consideration. It is advisable that you divide the mileage between the needs of your car. You have to calculate how much fuel for instance the car uses as an office car and also the mileage the car uses to serve your personal needs. This exercise can be repeated daily or can be done weekly or even monthly .The calculations will be determined by how you address the issue. It is also advisable to make a list of the mileage for your business and your personal use. Depending on the cost of fuel ,you can see how much you have used the car for your personal needs and the expenses you have incurred by using the car as an office car.
In the business world it should be known that a business expense is considered as both ordinary and of a necessity. Ordinary expenses are those that are acceptable in the business. For this reason therefore, it is important to separate the business expense from the personal expense. In cases of business purpose where the owner of business may use his car to move to another work site may be to meet a client of or using the car for business meetings .Transport from home to office doesn’t count a business need. If the car is used as an office car then you should realize that it is bound as a tax deductable.
On the other side, if the car is used only for business and office needs you can deduct the full cost of running the car.
Your travel expenses using your personal car as an office car which are put as tax deductable may include; travelling from one job to another job, travelling to see your client among other purposes.
Sources and Citations
It should also be noted that the car expenses incurred transport between home and office is not an expense to be deducted.