Auto Deductions - How Do I Deduct Business Use of My Car?

What are auto deductions and how do I deduct the business use of my car? If you own a business and use your vehicle for your business, you are entitled to auto deductions, which is important to reduce your taxable income.

You can generally figure the amount of your deductible car expense by using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, you may want to figure your deduction both ways before choosing a method to see which one gives you a larger deduction.

Other car expenses for parking fees and tolls attributable to business use are separately deductible, whether you use the standard mileage rate or actual expenses.

IRS Publication 463:

Standard Mileage Rate for 2020:

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00:00 - Intro
00:37 - Standard Mileage Method & Actual Expense Method
01:04 - Standard Mileage Rate
02:00 - Rules
02:34 - If You Want to Switch Methods IMPORTANT!
03:16 - Using Standard Mileage
04:01 - Using Actual Expense
05:32 - Conclusion

[MistaBeUFull]

thanks for this breakdown, very helpful

[ochicoloto]

For the standard milage rate, the limit of 5 cars is per company or per individual or per household?. If I have 2 vehicles in one LLC and 4 in second LLC, can I still use standard milage?