Deductions & credits

Yes, you may take two cars off for your business, as long as you used both for business.

You can either take actual expenses, which include sales tax paid, or you can take standard mileage (53.5 cents in 2017). 

Actual expenses include

  • gas
  • oil
  • insurance
  • repairs
  • depreciation

Sales tax paid is added to the basis of your car when you set it up for depreciation.

Keep in mind that one you start taking car expenses using the actual method, you're stuck with that method; you can't switch to taking standard mileage. 

View solution in original post