Depreciation - Mileage - Choosing Standard Mileage Rate
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**The information below has not been verified for the 2020 tax year as the IRS Pub. 334 has not yet been released by the IRS.**

Per IRS Publication 334 Tax Guide for Small Businesses (For Individuals Who Use Schedule C), on page 32:

Methods for Deducting Car and Truck Expenses

For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses.

  • Standard mileage rate.
  • Actual expenses.

Standard mileage rate. You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. For 2019, the standard mileage rate is 58 cents a mile.

CAUTION! If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls.

Choosing the standard mileage rate. If you want to use the standard mileage rate for a car or truck 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 either the standard mileage rate or actual expenses.

If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals).

In the TaxAct program, you would select "Car" or "Light Truck/SUV" from the Asset type drop-down when using the Standard Mileage Rate.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.