by Gregory J. Cook, EA, CPA
Accredited Tax Advisor
You drove your van 20,000 miles during the year. 16,000 miles were for business and 4,000 miles were for personal use. You can claim only 80% (16,000 / 20,000) of the cost of operating the vehicle as a business expense.
If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. In later years, you can choose to use the standard mileage rate or actual expenses.
If you want to use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period.
If you deduct actual expenses, you can deduct the cost of the following items: depreciation or lease payments, rental fees, garage rent, licenses, repairs, gas, oil, tires, interest, insurance, parking fees and tolls.