Deductions & credits
1. Yes, 20k business miles + 10k personal miles for a total of 30k miles in the example.
2. Yes, if you did not use the car for business the whole year, you would need to calculate the months of usage.
3. The computer figures out the percentage. Attached is the screenshot of the Car and Truck Expenses Worksheet. You will see boxes around the information you enter:
- Date placed in service - the program will do the math for the portion of the year
- Total miles driven
- Business miles
- Commuting miles
The program will then calculate personal miles and percent of business use
As for the gas, oil, and other expenses, you will enter the full amount and the program will figure out the deductible portion for you. Here is another screenshot showing you farther down the same worksheet Part III Actual Expenses shows where you entered your total of all gas, etc for the year. The program totals it all up and then takes the allowable percentage to determine your actual expenses.
