How-To Expense Your Vehicle

Fuel or Mileage? You have 2 options.


You can either calculate the 2019 mileage rate times the amount of business-related miles you traveled for the year, or you can deduct a percentage of your fuel expense, repairs and maintenance and car payments.

· Option 1: Track your mileage and add up the number of miles used for business.

o 2019 Mileage Rate = 58 cents.

o Ex. Total 2019 Business miles 5,000 x .58 = $2,900 can be deducted as a business auto expense

· OR Option 2: What percentage of the time/money spent in your vehicle was for business?

o 30% of your vehicle was used for business, so 30% of fuel expenses, repairs and maintenance, car insurance, car interest payments can be deducted as business auto expenses


Easy as that!


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