WCI #131: Rules for Business Vehicle Tax Deduction

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 7 November 2019

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Deducting your business vehicle sounds like a great way to lower your tax bill. Unfortunately it is probably not going to be a significant deduction for most doctors. For starters W2 employees cannot deduct a car or business mileage. You don't own a business so you cannot own a business vehicle. A business can buy a car if it is going to use it at least 50% for business purposes. Regardless of the percentage of time you use your car for business purposes, business owners can still deduct their business miles. Deducting business miles is worth $.58/mile in 2019. That is not insignificant and can really add up. I discuss the rules of business vehicle tax deductions in this episode to help you decide what you can deduct.

I also answer listener questions about how businessmen making millions avoid paying taxes, being on Tricare and using an HSA, what to do with the TSP when you retire, what to do with the whole life insurance policy your parents bought you, and how the pro-rata rule affects the mega backdoor Roth IRA. See the show notes at https://www.whitecoatinvestor.com/classic-blog/

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The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!

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Transcript

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0:00.0	This is the White Coat Investor Podcast, where we help those who wear the white coat get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:15.0	Welcome to White Coat Investor Podcast number 131,
0:21.0	deducting your car.
0:22.0	If you're finding our podcast informative and helpful, number 131, deduct in your car.
0:23.0	If you're finding our podcast informative and helpful,
0:25.5	we would encourage you to sign up for our monthly newsletter.
0:27.9	It is totally free and includes useful, actionable information
0:31.6	not available on the regular blog posts or this
0:34.3	podcast. It's almost like being in a secret club, the kind of club that can boost your
0:38.3	knowledge and enhance your wealth at the same time with no strings attached.
0:42.0	Sign up today at white code investor.
0:44.3	slash newsletter. You can do this and the white code investor can help.
0:48.6	All right, our quote of the day today. This comes from Charlie Munger, you know,
0:52.3	Warren Buffett's partner who who said, if you have a $2,000 monthly mortgage payment, Grandma can help.
0:58.0	If you have a $20,000 monthly mortgage payment, no one can help.
1:02.0	And that is the truth, and one of the biggest reasons why he
1:04.8	got to watch that lifestyle inflation especially if you were funding it with debt.
1:09.7	Thanks so much for what you do as most of of you know or recall, I am also a practicing physician.
1:14.9	I'm only half time now.
1:16.2	I've been half time now for a little bit over a year.
	...

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