There are two options the IRS gives people when it comes to car and mileage deductions:
(1) Actual expenses- this is where you take the actual expenses (gas,insurance, repairs/maintenance, interest and depreciation). The program figures out the percentage you used your car for business and takes that percentage for the items above and calculates your deduction.
(2) Standard deduction- this is what most people take. The IRS gives a set amount that covers all the above. It varies each year. You enter in the business miles drive and the program will calculate the deduction.
Under the asset portion of the business tab, this is where you enter in your car and the other expenses associated with it such as mileage and other expenses.
There are two options the IRS gives people when it comes to car and mileage deductions:
(1) Actual expenses- this is where you take the actual expenses (gas,insurance, repairs/maintenance, interest and depreciation). The program figures out the percentage you used your car for business and takes that percentage for the items above and calculates your deduction.
(2) Standard deduction- this is what most people take. The IRS gives a set amount that covers all the above. It varies each year. You enter in the business miles drive and the program will calculate the deduction.
Under the asset portion of the business tab, this is where you enter in your car and the other expenses associated with it such as mileage and other expenses.