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If you have self-employment income, yes, but it’s an either-or situation.You have two options when writing off your car: business mileage or actual costs. You have to pick one or the other.
- The business mileage deduction is a flat rate of $0.56 per mile for 2021. The IRS releases a new standard mileage rate every year that is intended to cover the cost of depreciation, fuel, repairs, insurance, etc.
- The actual costs method lets you write-off your what you actually paid for fuel, maintenance, insurance, etc, as well as depreciate your vehicle over its useful life.
For more in-depth instructions on how to write-off your auto expenses, check out our Guide to Car Deductions.
Note: tolls and parking fees are fully deductible under both methods.
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If you have self-employment income, yes, but it’s an either-or situation.You have two options when writing off your car: business mileage or actual costs. You have to pick one or the other.
- The business mileage deduction is a flat rate of $0.56 per mile for 2021. The IRS releases a new standard mileage rate every year that is intended to cover the cost of depreciation, fuel, repairs, insurance, etc.
- The actual costs method lets you write-off your what you actually paid for fuel, maintenance, insurance, etc, as well as depreciate your vehicle over its useful life.
For more in-depth instructions on how to write-off your auto expenses, check out our Guide to Car Deductions.
Note: tolls and parking fees are fully deductible under both methods.
No answer given yet!
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