Does employer mileage reimbursement cover depreciation also or just gas, tires, maintainance, etc.?


    The standard milaege rate is designed to cover all fixed expenses involved in owning and operating a vehicle and although the IRS does not specifically list each and every one of these expenses it does refer to some of the possibilities. It lists some fixed expenses as depreciation or lease payments, insurance, license and registration fees and personal property taxes


    In addition to the fixed expenses involved in owning a vehicle, milage rate is also designed to cover the variable expenses actually involved in driving those miles. Some examples of variable expenses are gasoline and the taxes on gasoline, oil, wear and tear on the tires and even the cost of routine maintenance and repairs. So basically, if you use the mileage option it is designed to cover all expenses involved in operating a vehicle. However, you may be eligible for additional deductions for parking fees, tolls, interest and taxes if they apply. You cannot use accelerated depreciation on your vehicle the first year and then switch to a mileage method the second year because the mileage method calculation includes straight line depreciation within its calculations.

      Contribute an answer

      People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

      1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
      2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
      3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
      4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
      5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.