Tracking Vehicle Expenses

If you use your vehicle in your business you need to be tracking certain items so you can appropriately claim a vehicle expense.

Vehicle expenses are deductible either as direct expenses or as a mileage allowance. The mileage allowance takes the business miles drove and multiples them by the mileage allowance for the year which varies every year. Direct expenses takes all of the expenses associated with that vehicle such as fuel, maintenance, repairs, etc and multiples it by the percentage of total miles driven that were business miles.