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.
