Small Businesses Can Benefit From Deducting Vehicle Costs on Their Taxes

UPDATE (2)-1-1Businesses that use a car or other vehicle may be able to deduct the expenses of operating that vehicle on their taxes. Generally, a business can use one or two methods to figure their deductible vehicle expenses:

  1. Standard Mileage Rate
    • Stand mileage rates for 2019:
      • $0.58 per mile for operating a vehicle for business use
      • $0.20 per mile for operating a vehicle for medical or moving purposes
      • $0.14 per mile for operating a vehicle in service of charitable organizations
  2. Actual Vehicle Expenses
    • These expectations can include items such as Licenses, Gas, Oil, Tolls, Insurance, Repairs, Lease payment and/or Depreciation (limitations and adjusts may apply)

Businesses that qualify must make a choice to use either the Standard Mileage Rate or Actual Vehicle Expenses by the due date of their return, including extensions. They cannot revoke their choice for that vehicle. 

I If you would like to speak to one of our tax specialists for more information, please call: 1 (866) 760-0940 or send a note to to setup a time to speak.  

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