Can I deduct auto insurance if I'm self-employed and use my vehicle?

[Patrice · Accepted solution]

Yes, you can elect to choose actual car expenses deduction or standard mileage deduction.  You can deduct the car expenses based on the percentage of business use for the vehicle.  For example, if you use the car 30% for business and 70% for personal use then you can deduct up to 30% of your eligible vehicle expenses.  The IRS allows a taxpayer to file the actual expense incurred OR use the standard mileage rate. (which is .54 cents per business mile driven as of 2016). 

If you decide to use actual car expenses, it includes auto insurance, payments, depreciation, registration, garage rent, licenses, repairs and maintenance, and parking and toll fees.

[Edited 3/1/2017|12:47pm]

[JR-Deac]

You can deduct automobile expenses if you use your vehicle for business. That means you drive your car for your job to different locations, not just back and forth to work, which is considered nondeductible commuting.

If you can deduct automobile expenses, you can choose to claim your actual expenses, which involves adding up your gas, insurance, repairs, etc, and deducting the percentage of the total that is business related. This involves keeping accurate records to establish the business use of your vehicle.