IRS Tax Tip: Business Owners, Self-Employed Individuals Can Still Deduct Car Expenses, Most Employees Cannot (IRC §274)

Taxpayers are urged to review whether they can still deduct the business use of their car even if claimed on past returns the IRS stated. Business owners and self-employed individuals may still deduct vehicle expenses on their taxes using either the standard mileage rate, which is $0.58 cents for 2019, or for actual car expenses, which include depreciation, lease payments, registration fees, insurance, gas, oil, tires, and repairs. Employees can no longer take an employee business deduction as part of their miscellaneous itemized deductions as the 2017 tax act, Pub. L. No. 115–97, suspended miscellaneous itemized deductions subject ...