Schedule C Expenses - Car and Truck

Article ID: 58933  

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. You must use actual expenses if you used your vehicle for hire (such as a taxicab) or you used five or more vehicles simultaneously in your business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.
You can take the standard mileage rate only if you:
  • Owned the vehicle and use 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 (except the period, if any, before 1998).
If you deduct actual expenses:
  • Include the business portion of expenses for gasoline, oil, repairs, insurance, tires, license plates, etc., and
  • Show depreciation and rent or lease payments.
If you take the standard mileage rate:
  • Multiply the number of business miles driven by 54.5 cents for 2018 (53.5 cents per mile for 2017) (54 cents per mile for 2016), and
  • Add to this amount your parking fees and tolls.
Do not deduct depreciation, rent or lease payments, or your actual operating expenses.
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:
  • Part IV of Schedule C or Part III of Schedule C-EZ if: (a) you are claiming the standard mileage rate, you lease your vehicle, or your vehicle is fully depreciated and (b) you are not required to file Form 4562 for any other reason. If you used more than one vehicle during the year, attach your own schedule with the information requested in Part IV of Schedule C, or Part III of Schedule C-EZ, for each additional vehicle.
  • Part V of Form 4562 if you are claiming depreciation on your vehicle or you are required to file Form 4562 for any other reason.

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Views: 2245 Created on: Jun 15, 2013