The business use of an automobile can be deducted using one of the two following methods:

Actual Expenses

Total your annual vehicle operating expenses, including fuel, oil, tires, repairs, license, insurance and depreciation.  Multiply the car operating expenses by the percentage of business use to arrive at your deductible expense.  A mileage log that records total personal use and business use is required as substantiation for this automobile expense deduction. Boyer and Boyer has prepared a Mileage Log (BLANK TEMPLATE) for your convenience. Visit the IRS.gov website and review Publication 463 for additional information.  Contact our firm with questions.

Standard mileage rates for 2019

For the calendar year 2019 the standard mileage rates for the deductible cost of operating an automobile for business, charitable, medical or moving purposes are as follows:

• 58 cents per mile for business miles driven
• 20 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

To take a business deduction for the use of your automobile, you must determine what percentage the vehicle was used for business verses personal use. No deduction is allowed for personal use, such as commuting to and from work.

In order to substantiate the business use automobile expense deduction you must maintain a contemporaneous mileage log that list the date of travel, mileage record and purpose of each business trip. Visit the IRS.gov website and review Publication 463 for additional information. Please contact our firm with questions.

For previous period mileage rates, please visit IRS Standard Mileage Rates

Boyer and Boyer has prepared a Mileage Log (BLANK TEMPLATE) for your convenience.