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Schedule C Expenses - Car and Truck

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Question
Schedule C Expenses - Car and Truck

Answer

You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. This is true even if you used your vehicle for hire (such as a taxicab). You must use actual expen-ses if you used five or more vehicles si-multaneously in your business (such as in fleet operations). You cannot use ac-tual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.

You can take the standard mileage rate for 2014 only if you:

  • Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or
  • Leased the vehicle and are using the standard mileage rate for the entire lease period.

If you take the standard mileage rate:

  • Multiply the number of business miles driven by 56 cents, and
  • Add to this amount your parking fees and tolls.


Enter the total on line 9. Do not deduct depreciation, rent or lease pay-ments, or your actual operating expen-ses.
If you deduct actual expenses:Include on line 9 the business por-tion of expenses for gasoline, oil, re-pairs, insurance, license plates, etc., andShow depreciation on line 13 and rent or lease payments on line 20a.


For details, see chapter 4 of Pub. 463. Information on your vehicle. If you claim any car and truck expenses, you must provide certain information on the use of your vehicle by completing one of the following.
1.
Complete Schedule C, Part IV, or Schedule C-EZ, Part III, if (a) you are claiming the standard mileage rate, you lease your vehicle, or your vehicle is fully depreciated, and (b) you are not re-quired to file Form 4562 for any other reason. If you used more than one vehi-cle during the year, attach a statement with the information requested in Sched-ule C, Part IV, or Schedule C-EZ, Part III, for each additional vehicle.
2.
Complete Form 4562, Part V, if you are claiming depreciation on your vehicle or you are required to file Form 4562 for any other reason (see Line 13, later).

 


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Views: 709 Created on: Jun 15, 2013
Date updated: Sep 16, 2015

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