Publication 463 - Introductory Material
Table of Contents
•Future Developments
•What's New
•Reminder
•Introduction ◦Users of employer-provided vehicles.
◦Volunteers.
◦Ordering forms and publications.
◦Tax questions.
•Useful Items - You may want to see:
Future Developments
For the latest information about developments related to Publication 463, such as legislation enacted after it was published, go to www.irs.gov/pub463.
What's New
Standard mileage rate. For 2014, the standard mileage rate for the cost of operating your car for business use is 56 cents per mile. Car expenses and use of the standard mileage rate are explained in chapter 4.
Depreciation limits on cars, trucks, and vans. For 2014, the first-year limit on the total depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). For trucks and vans, the first-year limit is $11,460 ($3,460 if you elect not to claim the special depreciation allowance). Depreciation limits are explained in chapter 4.
Section 179 deduction. For 2014, the section 179 deduction limit on qualifying property purchases (including cars, trucks, and vans) is a total of $500,000 and the limit on those purchases at which the deduction begins to be phased out is $2,000,000. Section 179 Deduction is explained in chapter 4.
Special depreciation allowance. For 2014, the special (“bonus”) depreciation allowance on qualified property (including cars, trucks, and vans) remains at 50%. Special Depreciation Allowance is explained in chapter 4.
Reminder
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Per diem rates. The IRS no longer updates Publication 1542, Per Diem Rates (For Travel Within the Continental United States). Instead, current per diem rates may be found on the U.S. General Services Administration (GSA) website at www.gsa.gov/perdiem.
Introduction
You may be able to deduct the ordinary and necessary business-related expenses you have for:
•Travel,
•Entertainment,
•Gifts, or
•Transportation.
An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.
This publication explains:
•What expenses are deductible,
•How to report them on your return,
•What records you need to prove your expenses, and
•How to treat any expense reimbursements you may receive.
Who should use this publication. You should read this publication if you are an employee or a sole proprietor who has business-related travel, entertainment, gift, or transportation expenses.
Users of employer-provided vehicles. If an employer-provided vehicle was available for your use, you received a fringe benefit. Generally, your employer must include the value of the use or availability of the vehicle in your income. However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle).
A working condition fringe benefit is any property or service provided to you by your employer for which you could deduct the cost as an employee business expense if you had paid for it.
A qualified nonpersonal use vehicle is one that is not likely to be used more than minimally for personal purposes because of its design. See Qualified nonpersonal use vehicles under Actual Car Expenses in c
