These expenses must allocated between Personal and Business costs. If the vehicle is used solely for business, 100% of the associated costs can be reported. If the vehicle is also for personal use, costs are reported (by percentage) how much the vehicle is used for business. For example:
If 50% of your vehicle's use is for business, 50% of total vehicle costs can be reported as business expense.
Record keeping is important: if you are audited, you'll need proof of its usage.
"Deductible Vehicle Expenses" apply when you are not being reimbursed.
Rule of Thumb: Must be ordinary and necessary costs
What does “ordinary and necessary” mean? These are costs associated with driving to-and-from work locations, visiting customers, attending a business meeting away from your regular work site, or leaving home to go to a temporary work location.
What does it ALL mean - Standard Mileage Rate vs. Actual Expenses, Which Is Better?
It depends on the vehicle you drive and the operating costs of the vehicle. If your vehicle gets great gas mileage, then taking the standard mileage deduction will likely be more beneficial for you. If your vehicle has very high operating costs and low gas mileage, then taking the actual expense deduction may produce better savings for you.
*You should always consult the IRS or a certified accountant to decide what deductions are applicable to your business.