It depends. You have 2 options: Standard mileage rate, or actual car expenses.
Standard mileage rate: You get a standard mileage rate per the IRS each year and you calculate the miles you drove for business and the program will calculate the mile deduction you take. For example lets say you drove 10,000 business miles for 2016 and the mileage rate was .54, you would get a $5,400 deduction on your return.
Actual car expenses: This is where you would total up all of your car expenses for the year: gas, insurance, interest, repairs and maintence. Then you would calculate the percentage of business miles that you drove last year. For example lets say the business miles driven was 32% of your total yearly mileage and all of your car expenses added up to be: $6,500 then you would get to deduct $2,080 on your return.
Most business people find it easier to keep up with mileage and use that method.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
