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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
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Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I use my personal car for business use. I use the actual

Customer Question

I use my personal car for business use. I use the actual expenses method, as discussed in irs tax topic 510-business use of car. Topic 510 states the following:["Actual Expenses - To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that is business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles"]1. I use my personal car for business
2. Last month I used my car exactly 34% for business and 66% for personal (based on mileage records)
3. QUESTION: Since No. 2. is true; can I take a tax business deduction of 34% of my car insurance (along with gas, oil, repairs, registration, etc)
Submitted: 2 months ago.
Category: Finance
Expert:  Thomas Mitchell replied 2 months ago.

Hello,

To determine the tax deduction for the business use of your personal vehicle, you would want to track everything by the lesser of a tax year (typically the 12 months ending December 31) or the period the vehicle was in service for business use. If it turns out you used your personal vehicle 34% of the time over the course of the entire tax year then yes, you would get to deduct 34% of your insurance, gas, oil, repairs, etc. Please let me know if you have any follow up questions.

thanks,

***** *****, CPA

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