Navigating Business-Vehicle Expense Deductions Can Be Tricky

November 18, 2024

If you operate a business, you can generally deduct expenses for the business-related use of your personal vehicle. There are two ways to determine the portion of your overall expenses that’s attributable to your business use for the current year: 1) the actual expense method, or 2) the standard mileage rate.



The actual expense method allows you to deduct expenses attributable to business use of the vehicle, including gas, insurance, and license and registration fees. Alternatively, you can use the standard mileage rate approved by the IRS. This figure is updated annually. The rate is 67 cents per mile for 2024. If you use this method, it’s critical to keep detailed records, including the mileage for each trip and the business purpose of the travel.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

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