@Andretti92 wrote:
What about if you are using a rental car for a month? I'm paying for the rental, I have my own car insurance which covers me, and I also got the damage waiver (insurance from the rental company). Gas too. I know I'm not performing maintenance tasks and repairs but I am using it for my self-employed business which I commute all over the place.
If not it would kind of stink to miss out on a months worth of deductions just because my car is in the shop!
You can't use the standard mileage method for a vehicle you don't own. You must use the actual expense method. See publication 463.
https://www.irs.gov/forms-pubs/about-publication-463
In this case, that means you must keep track of all your expenses for the rental car (the rental fees, gas and anything else) and you must keep a log of your mileage (date, purpose of trip, mileage) for both personal and work trips. Then deduct the percent of actual expenses that matches the percent of business use.
Also note that if the rental period is more than 30 days, and the car has a value higher than a set amount (a luxury car) there are some limitations. See the "inclusion rule" in publication 463.
