Table of contents
What is mileage tax deduction?...Read more
Who can claim the Car & Mileage tax deduction?...Read more
Standard Mileage Method for driving tax deduction...Read more
IRS Mileage Rate...Read more
How does mileage tax deduction work?...Read more
Actual expense method for driving tax deduction...Read more
Other tax deductions...Read more
Standard vs actual expense deduction method...Read more
Pros and Cons of Standard Mileage Deduction and Actual Expenses Method...Read more
Limits on changing between methods...Read more
Example: Say you're a full-time Uber driver, and you drive 45,000 miles by the end of the year. If 25,000 of them were for business, and you apply the standard mileage rate to them, they need to multiply the number of miles driven for business (25,000) by the IRS mileage rate 2021, which comes out to $14,625.
Continuing with the same example as above, as a part-time Uber driver, you drove 12,000 miles by the end of the year (2023), and 6,000 of those miles were for business.
Your Actual Expenses included:
Your car expenses total up to $12,070. Since you used the car 50% of the time for business, your Actual Expenses deduction is $6,035.
Finding all your qualifying expenses manually is a challenge, but FlyFin automatically finds all your deductions in minutes. The app securely connects with your bank statements and categorizes your expenses as deductions, possible deductions or non-deductions.
Actual Expense Method
Your car is expensive to maintain
Your car is efficient and low-maintenance
You're not good at keeping receipts
Your car is new and depreciating fast
You drive a lot for your business
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