Hi @ChevyShine ,
Congratulation on your new business!
If you are a sole proprietorship and will be reporting your business income in your Schedule C, you can choose between two methods of reporting your vehicle expenses.
Below is summary of both methods:
Actual Expenses method - you can expense/claim expenses you actually incur while operating your vehicle for business purposes. The types of expense include:
- gas
- oil changes
- tire
- car washes
- insurances
- repair and maintenance
- and Depreciation
You can only expense/claim the expenses based on the percentage that apply for your business use.
Standard Mileage method
This method you multiply your business miles by the amount per mile allotted by the IRS. This amount might change every year so please refer to the IRS link below for more information.
Whichever method you decide to use, please make sure you keep records of your miles use for personal and business separately and all receipts for the related expenses.
If your business is organize/structure as a corporation, partnership, or S-corporation, you must use the actual method to expense your vehicle use.
Here are some more helpful links:
Maximizing Tax Deductions for the Business Use of Your Car
Topic No. 510, Business Use of Car
Driving Down Taxes: Auto-Related Tax Deductions
Car and Truck Expense Deduction Reminders
Thank you and good luck!
