Deductible Actual Car Expenses

Q: What is deductible as “actual car expense” when using a personal car for business purposes?

A: Automobile expenses pertaining to a trade or business are deductible under the tax code as ordinary and necessary business expenses.

Actual car expenses include:

- Gasoline
- Oil
- Tires
- Repairs
- Insurance
- Depreciation
- Licenses
- Lease Payments
- Registration Fees
- Garage Rent
- Parking Fees
- Tolls

You can not use both standard mileage rate and actual car expenses at the same time. A fine or a penalty paid to a government for the violation of any law is not a deductible business expense.

Fore more information please refer to IRS Publication 463