SUV costs are a large item in the expenses of employees and the self-employed. Even though the biggest item is acquisition costs, recurring expenses should not be underestimated. Many professionals can deduct these expenses from their taxes on a pro-rata basis and reduce their tax burden by taking credit for these expenses. But very few people make use of this in their private vehicles.
Which costs are tax deductible and in which amount?
Tax deduction options are based on percentage of business use. In order to qualify for a tax credit, at least 50% of the SUV must be used for business purposes by self-employed persons and between 10% and 50% by employees. Business use includes, for example, daily travel to work, as well as business trips in a private vehicle. If a self-employed person uses the privately purchased SUV more than 50% for business trips, it is automatically classified as business assets.