Actual Expenses Method If you take the actual expenses, you can deduct:
Depreciation
Insurance
Registration and license plate fees
Repairs and maintenance (including tires)
Gasoline and oil
Car washes
You should keep good records to prove your expenses. You must generally prepare a written record for it to be considered adequate or use a computer logging program to record your records.
You should keep the proof you need in an account book, diary, statement of expense, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.
The records to keep are:
Total miles for the year
Mileage for each deductible use
Times and dates
Place/address
Business purpose
Receipts, cancelled checks, or bills
If you choose to take actual expenses when you first start using the car for business, you cannot change to the standard mileage rate deduction.
You also might be able to take advantage of other vehicle-related benefits, including a tax credit for hybrid motor vehicles and alternative fuel motor vehicles.
Call HDC Company at 502-426-3996 and ask to speak with one of our tax professionals for more information on mileage deductions.
