Can I Write This Off?can i write off my car
TL;DR
You can generally deduct car expenses if the vehicle is used for business purposes, but personal use is not deductible. It's important to distinguish between business and personal use and to keep accurate records.
Detailed Answer
Where to Put It on the Tax Form
Schedule C, Line 9 for car and truck expenses. If using Form 2106 for employee business expenses, refer to Line 1.
Real World Example
A freelance graphic designer drives 8,000 miles in a year, with 5,000 miles for business meetings and client visits. Using the 2023 standard mileage rate of 65.5 cents per mile, they can deduct $3,275 (5,000 miles x $0.655) on their Schedule C.
Calculation Required
A calculation is required for this deduction.
To calculate the deduction, track the total miles driven and the miles driven for business. Apply the standard mileage rate to the business miles or calculate the business-use percentage of actual expenses.
Audit Risk & Documentation Tips
Moderate audit risk. Keep a detailed mileage log, noting the date, destination, purpose, and miles driven for each business trip. Retain receipts for all vehicle-related expenses if using the actual expense method.
IRS Reference
IRS Pub 463
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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 20, 2025