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