If you use your personal vehicle for business purposes, you may be able to deduct certain expenses associated with that use. This could include expenses such as mileage, fuel, maintenance, and insurance directly related to business activities.
The Internal Revenue Service (IRS) sets a standard mileage rate that taxpayers can use to calculate the deductible costs of operating a car for business purposes. You can choose to deduct either the actual expenses incurred or use the standard mileage rate.
It's crucial to maintain accurate records of your business-related car expenses. This includes keeping a mileage log that documents the purpose of each trip, the starting and ending mileage, and other related expenses.
If you own the vehicle and use it for business, you may also be eligible to claim depreciation on the vehicle's cost. However, this deduction is subject to specific rules and limitations, and it's recommended to consult with a tax professional for guidance.