Self Employment Deductions

Forum|Forum|2 years ago
February 28, 2024
1 reply
9 views

If I use my car for my self employed job, can I put my whole monthly car insurance payment on as a deduction?

Ask the Experts - SelfEmployed - Feb 2024

DianeW777

Level 15

It depends. It's unusual for anyone to have a vehicle that is used 100% for business. The miles dictate how much you can deduct for expenses. The total business miles divided by the total of all miles on the vehicle will be the business use percentage used for all expenses related to the vehicle. As you might guess this can vary each year.

Also, you might choose to use the standard mileage rate for all business miles. This rate for 2023 for Self-employed and business: 65.5 cents/mile. You must elect this the first year a vehicle is placed in service for business or it cannot be used for that particular vehicle.

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