Deductions & credits

Standard Mileage Rate - For the current standard mileage rate, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses or search standard mileage rates on IRS.gov. To use the standard mileage rate, you must own or lease the vehicle and:

• You must not operate five or more vehicles at the same time, as in a fleet operation,
• You must not have claimed a depreciation deduction for the car using any method other than straight-line,
• You must not have claimed a Section 179 deduction on the car,
• You must not have claimed the special depreciation allowance on the vehicle, and
• You must not have claimed actual expenses after 1997 for a car you lease.

To use the standard mileage rate for a vehicle you own, you must choose to use it in the first year the vehicle is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

Deduct your self-employed vehicle expenses on:

• Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) or
• Schedule F (Form 1040), Profit or Loss From Farming if you're a farmer.

If you're an Armed Forces reservist, a qualified performing artist, or a fee-basis state or local government official, complete Form 2106, Employee Business Expenses to figure the deductions for your car expenses.