Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Deducting Your Vehicle | Incite Tax

31 Jan 2025 · 1 min

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0:40

In this brief video, the presenter explains how small business owners can deduct vehicle costs on their taxes. The IRS permits two distinct approaches: (1) the actual‑expense method, where you total the money spent on gas, new tires, insurance, registration, and any interest on a car loan; and (2) the mileage method, where you multiply the business miles driven by the IRS‑published mileage rate. The speaker advises viewers to select one method, pay all vehicle‑related expenses directly from the business, and maintain a mileage log to substantiate the deduction.

Chapters

Can I deduct my car for taxes? And if I can deduct it, how do I actually do that? The IRS has 2 ways in which you are able to write off vehicle use in your business. Actual expenses will include the gas, if I get new tires, insurance, vehicle registration, if I have a car loan, the interest on the car loan. All of that would be actual expenses. Or a mileage deduction. You take the business miles you drove and multiply that by the IRS mileage rate. You want to take actual expenses or mileage. Pay for your vehicle expenses out of your business and track your miles.