Self-Employed Mileage/Gas Deduction

[David7771]

Hello! So for the year of 2023 I have done Instacart shopping and DoorDash dashing as a self-employed contractor. I have been using my dad's vehicle that I am listed as a driver on to do my work. Being that he is currently the owner of the vehicle, as I understand it, I cannot deduct mileage or gas expenses, however, if I buy the vehicle from him or he gives me the car can I then deduct the mileage expenses given that I used the vehicle for my business?

I would really appreciate any help! Thank you!

[Vanessa A · Accepted solution]

That is not totally correct about 2023.  You can deduct your actual expenses that you paid.  So, if you paid for gas or oil changes or to have tires put on the car, you would be able to take a deduction for those things.  To do this, you would enter them as vehicle expenses and then one of the first few questions will say do any of these situations apply, and you will select that you did not own the vehicle. 

For next year, if you buy the vehicle from your dad, you will be able to use the standard mileage deduction or actual expenses for the time you own the vehicle.  For the time up until you purchase it from your dad, you will only be able to use your actual expenses. 

You cannot go in reverse though.  So even if you buy the vehicle today, you cannot take the  mileage deduction for last year.  You would have had to own it when you were driving it for those miles.