Are you keeping a log of your automobile expenses?


There are two methods you can use to calculate expenses for business use of your automobile.

woman at wheel

Actual expenses: Depreciation, licenses, repairs, gas, oil, tires, insurance, tolls, parking fees, lease fees, rental fees.

Standard mileage rates:The standard mileage rate for 2013 is:

  • 56.5 cents per mile for business miles driven
  • 24 cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

To document your expenses, keep a log to show where and why you used your automobile, and the number of miles driven.

You can’t use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle.

In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.