Business Use of Your Vehicle

If you use your vehicle solely for business purposes, then you can deduct the entire cost of operating the vehicle. If you use the vehicle for both business and personal purposes, you can only deduct the costs related to the business activities.

Driving from home to a principal place of business is considered a commute, even for those who are self-employed or small business owners. The only people who can deduct mileage for driving to and from home for business purposes are those with a home office as their principal place of business.

Deducting vehicle expenses has two options: Standard mileage rate and actual expenditure method. Taxpayers may want to determine which option will result in the greatest deduction.  Both methods require you to track your miles for the year.

Visit the IRS website for more information and for the current mileage rate:  https://www.irs.gov/taxtopics/tc510