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Self employed
Hello Chucv18!
Thank you for your questions. To use the standard mileage rate (standard deduction) for your car that is used for business, you must choose to use it in the first year the car is available for business use. However, if this is your second or third year of using the vehicle for business, you have the option of using the standard deduction or actual expenses (whichever produces a higher deduction for you). Mileage always needs to be tracked in order to get the correct business use percentage. If you choose to use the actual expenses, then you would need to keep track of all of your expenses related to your vehicle (such as gas receipts, repairs & maintenance, parking expenses, tolls paid, etc.)
Please refer to the article below for reference:
Please let me know if this answers your questions, or if I can be of further assistance.
Thank you!
Shirleyh88
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