The Basic Requirements:

You must use the vehicle for business purposes, and you need to track and document this usage carefully. Personal use of the vehicle must be separated from business use.

Two main methods

Actual Expenses Method

Understanding Vehicle Write-Offs as Business Expenses: A Simple Guide

As a business owner, you might be wondering if you can write off your vehicle as a business expense. The good news is that you can deduct vehicle expenses for business use, but there are some important things to know first.

The Basics of Vehicle Write-Offs

For your vehicle to qualify as a business expense, you need to use it for business purposes. This could include:

• Driving to meet clients
• Traveling between work locations
• Making deliveries
• Other business-related trips

Remember to keep business and personal use separate in your records.

Two Ways to Claim Vehicle Expenses

1. Standard Mileage Rate

This is the simpler option. In 2024, you can deduct 67 cents for every mile driven for business. To use this method:

• Start using it in the first year your vehicle is used for business
• Keep detailed mileage logs
• Make sure you're not using five or more vehicles at once for your business