Actual Expenses of Car
When you use a car for business, you may deduct the mileage expense by using either the standard mileage rate or the actual expenses of maintaining the vehicle. If you take the actual expenses, you can deduct the depreciation, gas, oil, insurance, tires, licenses, repairs, etc. 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.
If you use your car for business purposes, you may deduct a standard mileage rate for unreimbursed mileage. The 2017 standard mileage rate is 53.5 cents per mile. Be sure to keep a written record of your total mileage and business mileage.
Plug-in Electric Vehicles
The maximum credit for plug-in electric passenger automobiles is $7,500. You can find out if your car qualifies for the credit and how much at irs.gov.
In addition to business mileage, did you know that other types of mileage are deductible if you can itemize? If you are involved in charity or volunteer work for a qualified nonprofit organization, you can deduct 14 cents per mile driven for your volunteer work. You can deduct 25 cents per mile for driving to a doctor or dentist's office, to pick up prescriptions, and for other medical purposes.
Passenger Automobile Limits - Trucks & Vans
The depreciation limit for trucks and vans (including certain sport utility vehicles) used as passenger automobiles that were placed in service in 2017 is $3,560 ($11,560 with special depreciation). This limit must be reduced if the business use is less than 100%.
Section 179 Expensing - Sport Utility Vehicles
The maximum section 179 deduction is limited to $25,000 for certain sport utility vehicles (SUVs) weighing more than 6,000 pounds, but not more than 14,000 pounds.