Can I write off mileage on my car if I receive a monthly car allowance?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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I am in sales & exclusively drive my personal vehicle. I receive a monthly car allowance each month on my expense report (not taxed). My company also provides me with a gas card, so I do not pay for my own gas. Can I write off actual miles driven for work? Also, can I write off maintenance & repair costs?

TurboTax Deluxe Windows

bwa

Alumni - Champ

You can write off auto expenses but you also have to reduce them by any reimbursement not already included as taxable income on your W-2. You can't deduct both a mileage rate and repairs.

You can claim deductible business auto/truck expenses in one of two ways.

IRS Mileage Rate: You can claim business miles times the IRS mileage rate. IRS mileage rates for business activities are $0.56/mile in 2014, $.575/mile in 2015, $0.54/mile in 2016 and $0.535 in 2017. You can add parking and tolls to the mileage rate.
Actual Cost: You can claim your actual costs including depreciation times the percentage that you use your car for business. Actual costs would include gas, oil, insurance, repairs, etc. Payments on a note would not be deductible. The cost of the vehicle would be deducted through depreciation instead (or lease payments if you lease it.)

Where to Deduct:

· If you are an employee, they are a miscellaneous itemized deduction. Miscellaneous itemized deductions are only available if you qualify to itemize and only to the extent that they exceed 2% of your Adjusted Gross Income. Turbotax explains the 2% limit here.