You can claim vehicle expenses on your schedule C that you file for your business; this form contains all business income and expenses.
Basically, there are two ways to claim Vehicle expense; a) Standard Mileage or b) Actual expenses. You need to keep track of your business miles for both.
Standard Mileage – This is the easiest method. You simply keep track of total miles that you drove all year, for any purpose, and miles driven for your business.
You get to claim the IRS standard mileage rate per mile; for 2023, that is currently 65.5 cents per mile. The cost of the car, the cost to maintain, none of that comes into play with this method.
Actual Expense – Using this method, you need to keep track of all costs in total of owning your vehicle. Costs that you can include gas, oil, repairs, tires, insurance, registration fees and car washes.
You can also claim the interest on your vehicle loan, plus depreciation on the vehicle.
If you enter the cost of the car into your TurboTax software, and answer the questions, the program will compute the correct depreciation for you.
The amount of your actual expenses that you get to deduct is all of your vehicle expenses multiplied by the ratio of your business miles to your total miles driven.
Something to keep in mind; the more business miles you drive, the more that the direct mileage method will benefit you over time.
Please keep in mind that you can switch off between the two methods for different tax years ONLY IF you use the actual expense method first year you claim the vehicle on your return.
Here are some helpful links and delve a little deeper into the topic:
https://www.irs.gov/taxtopics/tc510
https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getti...
Please let me know if I can clarify anything further for you.
