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user17728148819

Level 2

Solved

Turo Car Expenses

Forum|Forum|4 months ago
March 9, 2026
2 replies
45 views

Can I deduct Vehicle Service Contract or GAP insurance? Thank you

Not A Product Question

Best answer by MindyB

It depends. If you take the standard mileage rate, the IRS considers things like gap insurance and service contracts to be part of the per-mile amount. You can list them as separate expenses if you choose the actual expense method.

If you do choose to deduct actual expenses, you must also calculate your business use percentage. For example, if you use the car for personal errands 20% of the time, you can only deduct 80% of the cost of the gap insurance. Keeping a detailed mileage log is the best way to prove these percentages if the IRS ever asks.

Here is an article you may find helpful: Standard Mileage Rate vs. Actual Auto Expense

MindyBAnswer

Level 13

It depends. If you take the standard mileage rate, the IRS considers things like gap insurance and service contracts to be part of the per-mile amount. You can list them as separate expenses if you choose the actual expense method.

If you do choose to deduct actual expenses, you must also calculate your business use percentage. For example, if you use the car for personal errands 20% of the time, you can only deduct 80% of the cost of the gap insurance. Keeping a detailed mileage log is the best way to prove these percentages if the IRS ever asks.

Here is an article you may find helpful: Standard Mileage Rate vs. Actual Auto Expense

user17728148819Author

Level 2

Thank you very much. Much appreciated