1. Depreciation of the automobile(s), tow trailers, machinery or any major piece of office equipment (including computers and fax machines)

2. Bank service charges, business licensing, and accountant fees

3. Storage, including the building's depreciation, maintenance, insurance and utility costs

4. Travel expenses, including lodging and meals for any show, meets, or prospects of buying another car (only 50-80% of meals are allowed for deduction)

5. Business portion of home, including mortgage payments or rent, mortgage interest, utilities, etc.

6. Office equipment and supplies

7. Wages for employees (wife and children perhaps) who maintain books or work on vehicles

8. Advertising and promotions

9. Repairs and maintenance to car(s)

10. Club fees, business registration fees, etc.

11. Telephone expenses

12. Automotive magazines or training materials

You can even deduct transportation from your shop (possibly your garage) to pick up automotive parts in town. These include depreciation, insurance, gas, repairs, parking fees, etc. However, an easier way is to use the government's standard mileage rate of 27.5 cents a mile (current for 1994 year). The expense is taken by calculating all the business miles put on the car and multiplying that by the standard mileage rate for that year.

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