It depends. When you are self-employed, you usually are able to claim a good amount of travel expenses related to your employment. When it comes to the use of your vehicle, there are generally two methods, standard mileage rate, and the actual expense method.
The Actual Expense method is as it sounds: you include the total amount of gas, oil, repairs, auto insurance, etc. that you spent in relation to your business, and you also are allowed to claim vehicle depreciation. Once you begin using the Actual Expense method on a vehicle, you must continue to use that method on that vehicle.
The Standard Mileage Rate is even simpler: you count the number of miles you drive for business use, and multiply by the standard mileage rate. For 2017, that rate was $0.535 cents/mile. To use the Standard Mileage rate, you must use the standard mileage rate when you begin using the vehicle for business use or it will not be eligible. Although with the Standard Mileage rate you do not count the expenses in the Actual Expense method (including depreciation), you still may claim in addition to the Standard Mileage rate any tolls, parking fees, as well as the portion of personal property tax that you spent on your vehicle based on the percentage of business use. For more information on this, please see the following IRS reference: Standard Mileage Rate,
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Yes
No
