If you use your car for business purposes, you ordinarily can deduct expenses related to the car or truck. Actual expenses include the cost of gas, oil, repairs, insurance, and depreciation on a vehicle. To determine the amount of car and truck expenses that can be included in actual expenses or the total business expenses reported on Schedule C, Schedule C-EZ, Schedule E or Schedule F you must use on of the following two methods:
- Standard mileage rate – The standard mileage rate for 2015 is 57.5 cents per mile. The standard mileage rate for 2016 is 54 cents per mile.
- Actual car expenses – If you do not use the standard mileage rate, you may be able to deduct your actual car expenses.
See Publication 463 to determine which method you qualify to use.