I recently purchased a vehicle to be used 95% as a rideshare driver. Is the vehicle purchase price deductible? What else can I deduct regarding the vehicle?
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Hello transitions210,
Yes, if you used personal vehicle for business, you can claim certain expenses. IRS has two separate methods to claim vehicle use. 1. Standard Mileage - You get a fix amount (set by IRS each year) for each mile drove for business purpose. 2. Actual expense - you deduct gas, repairs, insurance, depreciation etc. expenses for business use. With actual expense, you can deduct purchase price ( amt. will depend on business use %). There is something called section 179 deduction and bonus depreciation that you can use to deduct vehicle if you qualify. Please note, if business use drops below 50% or if you sell the vehicle, you will have to recapture special and bonus depreciation taken in prior years. See below links for more info. about these topics.
https://www.irs.gov/publications/p946
https://www.irs.gov/taxtopics/tc510
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