Hi Double3agle,
Assume both rental vehicles are used on business/self-employment. You should have an auto log or auto log app documenting the mileage driven for all purpose for the whole year 2021, and business miles driven with business purpose and dates. This will establish a business mile % to pro-rate total expenses incurred for the whole year.
(1) Standard mileage method is $0.56 per business miles for tax year 2021.
(2) Actual mileage method includes gas, oil, tools, licenses, lease payments, insurance, garage rent, parking fees, registration fees, repairs, tires. Your out of pocket maintenance costs are part of actual expenses. Add all costs up and times the business mile% is the deductible actual business vehicle expenses. You would need to support all the out of pocket expenses in case of IRS inquiry, such as receipts.
Compare (1) and (2) to determine which gives more deduction.
Below are two TurboTax articles for your reference.
Business Use of Vehicles
https://turbotax.intuit.com/tax-tips/small-business-taxes/business-use-of-vehicles/L6hi0zzzh
Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction
https://turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getti...
Hope the above helps. Thank you.
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