Question

I heard there is a car repair credit available. Are car repairs tax deductible?

Answer

Typically, you can deduct standard vehicle expenses which is not a car repair credit. However, if you used your vehicle for a business purpose, you are generally allowed to deduct your unreimbursed vehicle expenses. To learn what car repairs are tax deductible you will have to use one of the following methods:

  • Standard mileage rate — $0.545 per mile in 2018. If you use the standard mileage rate, you can’t deduct car repairs as a separate item. A portion of the standard rate already accounts for vehicle repair.
  • Actual vehicle expenses

Divide your vehicle expenses between your personal use of the car and your business use of the car based on the miles you drove for each. Report these expenses on a Schedule C if you’re self-employed or on Form 2106 if you’re an employee.

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