You can deduct the vehicle expenses based on the percentage of the business-related portion percentage on your Schedule E under Travel expenses.
These are ordinary and necessary auto and travel expenses related to your rental activities, including 50% of meal expenses incurred while traveling away from home.
You must use actual expenses if you used more than four vehicles simultaneously in your rental activities (as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that car. You cannot include rental or lease payments, depreciation, or your actual auto expenses if you use the standard mileage rate. If you deduct actual auto expenses: include the rental activity portion of the cost of gasoline, oil, repairs, insurance, tires, license plates, etc., and show auto rental or lease payments as an “additional expense.”
