When it comes to claiming auto expenses for business use of your car, we've got two methods to choose from: the standard mileage rate or actual expenses.

Standard mileage is the rate the government sets for operating a vehicle. It often provides the best tax result, and it factors in the cost of gas, maintenance, and insurance. Additionally, you can take the following expenses:

• Parking fees

• Tolls

• Interest on loans

• Personal property tax

The other option is to lay out your actual expenses, i.e. all the money you spent on the car in a given year. In most cases, this method will actually result in a lower business expense than the standard mileage rate, so if you're not sure, go with standard mileage and we can talk more in your appointment.

If you use the actual expense method you can include things like:

• Maintenance and repairs

• Tire and oil changes

• Gas

• Insurance

• Registration fees

• Rental or lease payments

• Vehicle loan interest

• Depreciation

• Garage rent

And if you drive for a ridesharing company like Uber or Lyft, you may be eligible to claim additional operating expenses, regardless of which of the above methods you use:

• Cell phone plans, chargers, dashboard mounts

• In-car food and drink items for passengers

• Hand sanitizer and partitions

• First aid kits

• Third-party apps to track mileage

• Tools for car maintenance (tire pump, jumper cables)

• Roadside assistance

The most important thing to remember with auto expenses is that you've got to track your mileage and keep good records for your additional expenses.

Determining which method is the most advantageous for you and understanding which expenses are allowable given your line of work are not always straightforward. Ask your tax preparer or email info@brasstaxes.com to get the best advice for your situation!