if you're a W-2 (employee) this would be a non deductible business expense (to the extent there was qualifying business usage) in 2018. you could go back and amend 2016 and 2017. Employee business expense on form 2106 which carries the expense to schedule A so your itemized deductions would have to exceed your standard deduction
as an independent contractor (self-employed) business use would be deductible as auto/truck expense on Schedule C. again you could go back and amend 2016 and 2017.
you can not claim amount paid from 2015 to 2017 in 2018. each year stands on its own
Business use is determined by the number of miles traveled between two business locations. The business use percentage is simply the ratio of total business miles for the year to total miles for the year for the vehicle. As a reminder, commuting miles to and from your normal place of business are not considered to be business miles.
When you use a vehicle for business purposes, the business portion of depreciation and ordinary and necessary vehicle operating expenses are deductible. The tax regulations provide two methods for calculating the business portion of vehicle expenses which can be used by self-employed taxpayers and employees:
(1) the deduction may be computed using the standard mileage rate for the number of business miles driven during the year, or
(2) the business portion of actual vehicle expenses, including depreciation and the Section 179 deduction, may be deducted.
Standard Mileage Rate Method:
The standard mileage rate varies from year to year and is computed by the IRS to represent the cost of fuel, oil, insurance, repairs and maintenance and depreciation or lease payments for the vehicle. The standard mileage rate method is available regardless of the cost of the vehicle.
In addition to the standard mileage rate, the costs of business-related parking and tolls are 100 percent deductible. The standard mileage rate can only be used if this method was used to compute the business auto deduction for the first year the vehicle was placed in service and each subsequent year. If the standard mileage rate is used to calculate the vehicle expense deduction for a vehicle, straight-line depreciation must be used if there is a subsequent switch to the actual expense method.
Actual Expenses Method:
To use the actual expense method, first determine the entire cost of operating the vehicle for the year
These expenses include:
Gas
Maintenance
Car payments/lease payments
Car insurance
License and registration
for leased vehicles their is a leased vehicle inclusion amount that varies
keep excellent vehicle expense documentation and contemporaneous usage records. mileage log
