dev145
Employee Tax Expert

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Hello transitions210,

 

Yes, if you used personal vehicle for business, you can claim certain expenses. IRS has two separate methods to claim vehicle use. 1. Standard Mileage - You get a fix amount (set by IRS each year) for each mile drove for business purpose. 2. Actual expense  - you deduct gas, repairs, insurance, depreciation etc. expenses for business use. With actual expense, you can deduct purchase price ( amt. will depend on business use %). There is something called section 179 deduction and bonus depreciation that you can use to deduct vehicle if you qualify. Please note, if business use drops below 50% or if you sell the vehicle, you will have to recapture special and bonus depreciation taken in prior years. See below links for more info. about these topics. 

https://www.irs.gov/publications/p946

https://www.irs.gov/taxtopics/tc510

https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depre...

https://turbotax.intuit.com/tax-tips/rental-property/depreciation-recapture-definition-calculation-a...

 

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