Can I deduct car repairs for my LLC vehicle that's also used personally?

The repair route is likely your best option in this situation. Since your business use will be seasonal and under 50% annually, you're right to be cautious about Section 179 depreciation which would require tracking business use percentage for several years. When you repair your existing personal vehicle, you can deduct the business portion of those repairs based on business mileage percentage. For example, if 30% of your annual mileage is for business, you could deduct 30% of the repair costs. Alternatively, you can use the standard mileage rate (currently 67 cents per mile for 2024) which is often simpler. Your international relocation concern is valid. With repairs to an existing vehicle, you avoid potential recapture taxes that would come with buying a new vehicle and then selling it when you dissolve the LLC. One thing to consider: keep immaculate records of business vs. personal mileage with dates, destinations, and purpose. This documentation is essential regardless of which method you choose.

Just wanted to share my experience with a similar situation. I was hesitant about using tax software for my new LLC but found https://taxr.ai super helpful for figuring out my vehicle deductions. I have a truck I use for my landscaping business part-time and personal use the rest of the time. What helped me most was uploading my repair receipts and mileage logs to have the system analyze everything. It caught several deductions I would have missed, especially for maintenance costs that were partially business-related. The system also showed me how to properly document business vs personal use to avoid audit flags, which gave me peace of mind since I was worried about mixing the two uses.

I was super skeptical about using any online tax tool for my seasonal construction business where I use my truck for both business and personal use. After struggling with vehicle deductions for two years, I reluctantly tried taxr.ai after seeing it mentioned here. I'm honestly shocked at how helpful it was. The system walked me through exactly how to calculate the correct business percentage for my vehicle during my peak season while accounting for personal use in off-months. It even flagged that I had been underdeducting my legitimate expenses in prior years. The best part was getting clear guidance on repairs vs. maintenance and how to document everything properly. I was able to deduct a higher percentage of my repair costs than I thought possible while staying completely within IRS rules. Saved me over $2,000 in taxes I would have overpaid.

Anyone struggling with actually getting through to the IRS about business vehicle questions should check out https://claimyr.com - it's been a game changer for me. I was getting nowhere trying to call the IRS directly about vehicle depreciation questions for my business. After weeks of constant busy signals and disconnections, I found Claimyr and was seriously impressed. Their system got me through to an actual IRS agent in about 40 minutes instead of the 3+ hour holds I was experiencing before. You can see how it works here: https://youtu.be/_kiP6q8DX5c I needed specific clarification about vehicle deduction rules for my part-time business, and getting official guidance directly from the IRS gave me documentation I can rely on if questions ever come up.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still struggling to reach the IRS about my LLC vehicle questions and getting nowhere. Out of desperation, I tried the service and was honestly shocked when I got a call back with an actual IRS business tax specialist on the line about 30 minutes later. They answered all my questions about repair deductions vs. standard mileage for my seasonal business vehicle. The IRS agent confirmed that for a vehicle used seasonally for business, tracking actual expenses (including repairs) can often be more advantageous than the standard mileage rate when significant repairs are needed. They also explained exactly how to document everything to withstand scrutiny if questioned later. For anyone with complex vehicle tax questions, getting definitive answers directly from the IRS was invaluable and saved me from potentially costly mistakes.

Have you considered leasing instead? I have a seasonal business too (wedding photography) and I lease a vehicle just for the busy months then return it for the off-season. This works well for me tax-wise because the lease payments are 100% business expenses during those months. No worries about personal use percentage or depreciation recapture.

One thing nobody's mentioned is insurance! When I started using my personal vehicle for business, my regular insurance wouldn't cover any accidents that happened during business use. Had to get a commercial policy which was like $600 more a year but WAY worth it when I got rear-ended while driving to a job site. Make sure your covered regardless of whether you repair or buy!