Real Expense Deduction: Who Qualifies and What You Get
Self-employed professionals in France can deduct specific vehicle costs, like fuel and maintenance, from their taxable business income.
The Real Expense Deduction allows self-employed professionals to subtract the actual costs of running a vehicle from their total business income.
Who it's for
This scheme is designed for self-employed professionals who need to account for their business-related travel and vehicle upkeep.
What you get
You can deduct specific costs related to your vehicle from your business income. This includes expenses for fuel and general vehicle maintenance.
What it costs you
To use this method, you must keep a meticulous logbook of your trips. You will need to document your mileage and travel details carefully to prove these were business expenses.
The catch to know
You cannot use this and a standard flat-rate deduction at the same time. You must choose between using this method for your actual expenses or using the standard deduction.
How to apply
- Track all your business trips in a detailed logbook.
- Keep all original receipts for fuel and vehicle repairs.
- Calculate your total business-related vehicle expenses.
- Report these figures when filing your business income tax.