Writing off a car as a business expense for an LLC (Limited Liability Company) involves following certain guidelines and requirements set by the IRS.

Here’s a general overview of how to write off a car with an LLC…

1. Use of the Car for Business Purposes
   • To deduct car expenses as a business expense, the car must be used primarily for business purposes. This includes activities such as traveling to client meetings, conducting business errands, or transporting goods or equipment for the business. Keep detailed records of your business mileage and the purpose of each trip to support your deduction.
2. Choose a Deduction Method
   • The IRS allows business owners to choose between two methods for deducting car expenses – the standard mileage rate method or the actual expenses method.
     • Standard Mileage Rate Method – Multiply the business miles driven by the IRS standard mileage rate for the tax year. For example, in 2022, the standard mileage rate is 56 cents per mile for business miles driven.
     • Actual Expenses Method – Keep track of all car-related expenses, including gas, oil changes, repairs, insurance, registration fees, and depreciation. You can deduct the percentage of these expenses that corresponds to the percentage of business use of the car.
3. Document Business Use
   • Maintain detailed records to document the business use of the car. This includes keeping a mileage log or using a mileage tracking app to record the date, purpose, starting and ending odometer readings, and total miles driven for each business trip. Documentation is crucial to substantiate your deduction in case of an IRS audit.
4. Consider Depreciation
   • If you choose the actual expenses method, you may be able to deduct depreciation expenses for the car. Depreciation allows you to recover the cost of the car over its useful life as a business asset. The IRS provides guidelines for depreciating business assets, including cars, using methods such as the Modified Accelerated Cost Recovery System (MACRS).
5. Follow IRS Rules and Limits
   • Be aware of IRS rules and limits related to car deductions. For example, there are limits on luxury vehicle depreciation and restrictions on deducting expenses for commuting to and from a regular place of business. Consult IRS publications, such as Publication 463 (Travel, Entertainment, Gift, and Car Expenses), for detailed guidance on car expense deductions.
6. Consult with a Tax Professional
   • Tax laws and regulations related to business car deductions can be complex and subject to change. It’s advisable to consult with a tax professional, such as an accountant or tax advisor, who can provide personalized guidance based on your specific situation and help ensure compliance with IRS requirements.

By following these steps and maintaining accurate records, you can write off your car expenses as a business expense for your LLC, potentially reducing your taxable income and lowering your tax liability.