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I use my automobile for business purposes. Can I take a tax deduction?

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

  • Actual Expenses

  • or

  • Standard Mileage


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.

Standard Mileage

For calendar year 2019, the standard mileage rates for the deductible cost of operating an automobile for business is 58 cents per mile. To calculate the deduction, the standard rate should be multiplied by the total business miles traveled. Similarly to actual expense, a mileage log must be maintained showing both business and personal use of the vehicle.

Boyer and Boyer has prepared a Mileage Log (BLANK TEMPLATE) for your convenience. Visit the IRS Website website and review Publication 463 for additional information, or contact our firm with questions.