Taxpayers must notify the Commissioner of the Revenue when a vehicle changes from Personal Use to Business Use.
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A vehicle is designated as having “business use” when:
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- the vehicle is used over 50% of the time for business purposes OR
- a business vehicle tax deduction (depreciation and other expenses) for the vehicle has been claimed on the federal income
tax return of a business or individual by the filing of a:
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- Schedule C – Form 1040 / Profit or Loss from Business
- Form 2106 – Employee Business Expenses, or
- Form 4562 – Depreciation and Amortization Schedule
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More information on determining whether a vehicle is used for business or nonbusiness purposes can be found on DMV’s website at
www.dmv.state.va.us/webdoc/general/pptr/nonbusiness.asp.
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Note that vehicles designated for “business use” do not qualify for Personal Property Tax Relief Act (PPTRA).
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