What is the rate for 2017 if you were to use your actual car expenses?
If you plan to deduct your actual car expenses you need to calculate the percentage of time that you used the car for business. As long as it is at least 50%, you can deduct expenses like gas, parking fees and repairs for your vehicle. You would actually add up all of your expenses and multiply it by the rate that you use your car for business.
However, if you don’t have all of your receipts and prefer to go with a simpler approach, you can use the standard mileage deduction rate which was 53.5 cents for 2017. I have included two links below to articles that explain how this deduction works and how to calculate it:
When to Use Standard Rate vs. Actual Car Expenses:https://fitsmallbusiness.com/standard-mileage-rate-deduction/
How to Calculate Your Car Depreciation Deduction:https://fitsmallbusiness.com/car-depreciation-deduction/
Crystalynn Shelton, CPA
315 Madison Avenue, 24th Floor
New York, NY 10017
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