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Actual Vehicle Expenses/Deductions

The alternative to the 'Standard Mileage Rate' method is the 'Actual Expense' method. To take the Actual Expense deduction, you need to track what you actually spend on gas and oil, repairs and maintenance, and insurance for your vehicle; you can even take a deduction for the depreciation of your vehicle. However, since an automobile is what the IRS calls "listed property," there are special rules for deducting the actual expenses associated with its use.

Since you are not allowed a deduction for the personal use of your vehicle, you can only deduct a PERCENTAGE of the actual expenses that relate to the business use of your vehicle. The way to calculate the business use of your vehicle for the Actual Expense deduction is to track your mileage and calculate a business use percentage based on miles driven. Deductr performs this calculation for you.

Consult your tax professional to see if this fits your circumstances. This is not to be taken as tax advice. Please refer to our End User License Agreement.

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