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I am a employee (mechanic) on a farm. I use/abuse my truck as a service truck. Since I need/use it as a tool for work, can I claim the truck loan payments & repairs?

 
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I am a employee (mechanic) on a farm. I use/abuse my truck as a service truck. Since I need/use it as a tool for work, can I claim the truck loan payments & repairs?

Somewhat.

You can claim business use of a vehicle using either the standard mileage method or the actual expense method. For the standard mileage rate method, you must keep track of work and non-work mileage with a diary, log book or app.  You can deduct a standard rate which for 2016 is 54 cents per mile.  The standard rate includes allowances for gas, repairs, maintenance, and wear and tear.

Or you can use the actual expense method.  You must track all your mileage as above, and all your expenses--gas, oil changes and tires, other maintenance and repairs, insurance.  You can't include loan payments but you can include a depreciation allowance for wear and tear.  Add up all your expenses and you deduct the percent of expenses that equals the percent of work miles driven.

If you are a W-2 employee, these expenses go on a form 2106, which are itemized deductions and are reduced by the 2% rule, so your actual deduction will depend on your other tax situations.

You can't deduct mileage for commuting to and from work, but you can deduct mileage spent during working hours.  See publication 463 for more information on allowable expenses https://www.irs.gov/uac/about-publication-463

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I am a employee (mechanic) on a farm. I use/abuse my truck as a service truck. Since I need/use it as a tool for work, can I claim the truck loan payments & repairs?

Somewhat.

You can claim business use of a vehicle using either the standard mileage method or the actual expense method. For the standard mileage rate method, you must keep track of work and non-work mileage with a diary, log book or app.  You can deduct a standard rate which for 2016 is 54 cents per mile.  The standard rate includes allowances for gas, repairs, maintenance, and wear and tear.

Or you can use the actual expense method.  You must track all your mileage as above, and all your expenses--gas, oil changes and tires, other maintenance and repairs, insurance.  You can't include loan payments but you can include a depreciation allowance for wear and tear.  Add up all your expenses and you deduct the percent of expenses that equals the percent of work miles driven.

If you are a W-2 employee, these expenses go on a form 2106, which are itemized deductions and are reduced by the 2% rule, so your actual deduction will depend on your other tax situations.

You can't deduct mileage for commuting to and from work, but you can deduct mileage spent during working hours.  See publication 463 for more information on allowable expenses https://www.irs.gov/uac/about-publication-463

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