I have a question about the mileage deduction rules when filing a tax return. Should I use the standard mileage deduction or claim actual auto expenses?
To determine if you would benefit most from the standard mileage deduction or actual vehicle expenses you will have to review your specific circumstance. choice based on your specific situation.
Standard mileage is available unless:
- You use more than five vehicles at one time for your business.
- You claimed actual expenses after 1997 for a vehicle you leased.
- You claimed actual expenses in the first year you used the vehicle for business.
- You’re a rural mail carrier who received a qualified reimbursement.
- You claimed a depreciation deduction other than straight-line depreciation for your vehicle in a prior year.
Both methods require you to keep track of:
- Your business and personal mileage
- The business purpose for all business mileage
If you use the actual expense method, you’ll also need to keep track of receipts for your vehicle’s:
- Gas and oil
- Interest paid
- Other automobile expenses
Regardless of the method you use, you can claim the business percentage of these:
- Personal property taxes paid
- Any tolls and parking fees
If you’re self-employed, you can only deduct interest expenses and personal property taxes for your business auto expenses. These expenses aren’t permitted for employee vehicle expenses.
Will depreciation affect an itemized deduction? Learn more from the tax experts at H&R Block.
Do you qualify for an IRS tuition and fees deduction? Learn more from the tax experts at H&R Block.
Learn more about deducting school related travel expenses with advice from the tax experts at H&R Block.
Do you need to itemize your charitable donations to claim them on your taxes? Learn more from the tax experts at H&R Block.