Tax Law and News Deducting the Standard Mileage Rate vs. Actual Expenses for Business-Use Vehicles Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Mike D'Avolio, CPA, JD Modified Aug 29, 2023 1 min read The standard mileage rate for business related travel is based on an annual study of fixed and variable costs of operating a vehicle, including depreciation, insurance, repairs, tires, maintenance, gas and oil. Taxpayers have the option of claiming deductions based on actual costs of operating the car versus the standard mileage rate. A taxpayer may not use the standard mileage rate for a car after claiming accelerated depreciation, including Sec. 179 expense for that car. The standard mileage rate is not available to fleet owners (more than four vehicles used simultaneously). If you claim the standard mileage rate instead of the actual expenses, you can also deduct parking fees and tolls. If you claim actual expenses, you can claim a depreciation deduction, unless you lease your car. If you claim any deduction for the business use of a car, you must provide information about the use of the car, such as date placed in service, mileage (total, business, commuting and other personal mileage), after-work use, use of other vehicles, whether you have evidence to support the deduction and whether the evidence is written. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are: 54 cents per mile for business 19 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations Previous Post IRS Addresses Eligibility for Premium Tax Credit While Also Enrolled… Next Post IRS Revises Form 3115 Written by Mike D'Avolio, CPA, JD Mike D’Avolio, CPA, JD, is a tax law specialist for Intuit® ProConnect™, where he has worked since 1987. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. More from Mike D'Avolio, CPA, JD Comments are closed. Browse Related Articles Tax Law and News IRS Announces 2016 Standard Mileage Rates for Business,… Tax Law and News Advising Your Self-Employed Driver Clients: Don’t Ove… Tax Law and News Standard Mileage Rates Will Go Down in 2016 Tax Law and News Self-Employed Tax Tips for Construction Contractors Tax Law and News Tax Year 2017 Tips for Self-Employed Clients Tax Law and News 15 must-see tax breaks for small business owners in 202… Tax Law and News Poor Recordkeeping Hurts Taxpayers: Problems and Preven… Tax Law and News Tax Tips for Self-Employed Clients Tax Law and News How Your Clients Can Use Technology to Track Business M… Tax Law and News Are Your Clients Overdue for a Company Car Tune-Up?