Do you use your car for business trips? If so, you’re entitled to deduct your automobile expenses attributable to business driving. However, there are several twists and turns along the way. For starters, you can’t deduct the cost of commuting back and forth from work. This is a purely personal expense. But trips between your regular workplace and a client’s business location count as business travel. In addition, you may deduct expenses for traveling between different branches of your business.
There are two basic ways to deduct business auto expenses: the actual expense method or the standard mileage rate. Taxpayers who choose the standard mileage rate may not deduct actual expenses, such as depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance or vehicle registration fees. Call us and let us help you decide which method is best for you.