#IOFF TOPIC REGISTRATION#
Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles. Then, in later years, you can choose to use the standard mileage rate or actual expenses.įor a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate.Īctual Expenses - To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that's business use. To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business.
You must not have claimed actual expenses after 1997 for a car you lease.You must not have claimed the special depreciation allowance on the car, and.You must not have claimed a Section 179 deduction on the car,.You must not have claimed a depreciation deduction for the car using any method other than straight-line,.You must not operate five or more cars at the same time, as in a fleet operation,.To use the standard mileage rate, you must own or lease the car and: Standard Mileage Rate - For the current standard mileage rate, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses or search standard mileage rates on IRS.gov. If you qualify to use both methods, you may want to figure your deduction both ways before choosing a method to see which one gives you a larger deduction. You can generally figure the amount of your deductible car expense by using one of two methods: the standard mileage rate method or the actual expense method. However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use. If you use your car only for business purposes, you may deduct its entire cost of ownership and operation (subject to limits discussed later).
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