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How to Write Off My Vehicle for Business
VEHICLE DEDUCTION: There are two IRS approved methods to deducting the business use of your vehicle: MILEAGE METHOD and ACTUAL EXPENSE METHOD.
Which Method Is Best?
The Mileage Method is the most simple and best if you use your vehicle less than 50% for business. Just keep track of your business miles. For 2025, the IRS allows $0.70/mile. That adds up quickly and can be an important tax deduction! It is also the number one audit area, so it is important to keep a milage log – an app on your phone or a little notebook are both acceptable. Business mileage includes trips for the operations of your business. That includes trips from your regular workplace to the bank, or to get supplies, or to mail a package. It also includes travel to the airport for a business trip or to lunch with a client.
What Isn’t Deductible?
Personal trips or commuting from your home to the studio/shop is not deductible. However, if your office IS in your home, then the trip is deductible. (You can only have one business office.) If you use the mileage method, then you do not keep track of gas and other car expenses. The IRS rate is an average of all of those costs, and typically increases annually.
LuAnn Roberts, CPA
CPA and Small Business Mentor at Roberts Accounting Solutions
We juggle, we pivot, we ask for help…and we get it done. LuAnn was a single mom who raised two daughters, while also running her business. She knows what it takes to be successful and she loves empowering other women to do the same.
