I have a question about self-employed tax deductions. What self-employed vehicle expenses am I eligible to deduct?
To deduct vehicle expenses, you can use standard mileage or actual expenses. For either method, keep a log of the miles you drive for your business. Both methods allow self-employed tax deductions for tolls and parking fees.
If you use the standard mileage rate, you can only deduct the mileage at a standard rate. For 2022, the rate is $0.63. You cannot deduct self-employed vehicle expenses, including:
- Actual vehicle expenses
- Depreciation
- Lease payments
- Maintenance
- Repairs
- Gasoline
- Oil
- Insurance
- Vehicle registration fees
If you use actual vehicle expenses, you can’t deduct mileage. Instead, you can deduct:
- Depreciation
- Licenses
- Lease payments
- Registration fees
- Gas
- Oil
- Insurance
- Repairs
- Tires
- Garage rental
If you use your car for both business and personal use, you must prorate your expenses. To learn more about self-employed vehicle expenses, see Publication 463: Travel, Entertainment, Gift, and Car Expenses at www.irs.gov.
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