Great question! The short answer — yes. Generally you have two options:
1) Track your business mileage and claim the “standard mileage deduction” on your taxes, which is $0.56/mile in 2021
2) Add your vehicle as a “listed asset” on your tax return and claim the actual business costs of the vehicle.
It doesn’t matter that it was purchased 18 months prior, all that matters is when it was “placed in service,” which would be the date you started driving for work. For a more in-depth instructions, check out our Guide to Car Tax Deductions on Keeper Tax’s Free Resources page!
No answer given yet!
Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.