Ask an AI Accountant

A free tool by

Question
Can I write off my car?
AI accountant’s answer:
It depends on how you use your car and for what purpose. If you use your car for business purposes, you may be able to deduct certain expenses related to the car. There are two main methods to write off your car expenses for business use: 1. Standard Mileage Rate: For 2022, the standard mileage rate is 58.5 cents per mile for business use. This rate encompasses depreciation, repairs, maintenance, gas, and other car-related expenses. To use this method, you must track your business mileage and multiply it by the standard mileage rate. 2. Actual Expenses Method: Alternatively, you can deduct the actual expenses related to your car's business use, such as gas, maintenance, repairs, insurance, depreciation, and more. You'll need to track all your car expenses and the business portion of those expenses, which is determined by the percentage of miles driven for business compared to the total miles driven in the tax year. Note that if you use your car for both business and personal purposes, only the portion used for business is deductible. Additionally, other requirements and limitations may apply, depending on your specific tax situation. It's important to keep accurate records of your car usage and expenses to claim the deductions accurately.
Comment from reviewer
Isaiah McCoy, CPA

For the second half of 2022, the standard mileage rate was 62.5 cents per mile for business use.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Estimate tax saving

Track and claim every eligible deduction with Keeper

Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.