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Deductions & credits
You can write off auto expenses but you also have to reduce them by any reimbursement not already included as taxable income on your W-2. You can't deduct both a mileage rate and repairs.
You can claim deductible business auto/truck expenses in one of two ways.
- IRS Mileage Rate: You can claim business miles times the IRS mileage rate. IRS mileage rates for business activities are $0.56/mile in 2014, $.575/mile in 2015, $0.54/mile in 2016 and $0.535 in 2017. You can add parking and tolls to the mileage rate.
- Actual Cost: You can claim your actual costs including depreciation times the percentage that you use your car for business. Actual costs would include gas, oil, insurance, repairs, etc. Payments on a note would not be deductible. The cost of the vehicle would be deducted through depreciation instead (or lease payments if you lease it.)
Where to Deduct:
· If you are an employee, they are a miscellaneous itemized deduction. Miscellaneous itemized deductions are only available if you qualify to itemize and only to the extent that they exceed 2% of your Adjusted Gross Income. Turbotax explains the 2% limit here.
- If you are self-employed, these expenses would be business expenses on Schedule C.
May 31, 2019
8:04 PM