A deduction for business use of your vehicle, using either IRS standard rate or actual expenses.
The mileage deduction allows you to deduct business use of your vehicle using either the IRS standard mileage rate or your actual vehicle expenses. You must choose one method for each vehicle. The standard rate is simpler but actual expenses (gas, repairs, insurance, depreciation) may yield higher deductions for some vehicles.
Driving 15,000 business miles at 70¢/mile = $10,500 deduction. That's equivalent to writing off about $35,000 in income for someone in the 30% bracket.
Standard mileage is simpler and often better for fuel-efficient vehicles. Actual expenses may be better for older cars with high maintenance costs. AlphaTax calculates both.
Any driving for business: client meetings, supply runs, bank trips. NOT commuting from home to your main work location (unless you have a home office).
AlphaTax helps self-employed professionals maximize tax savings with AI-powered expense tracking.
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