However, you may be able to deduct more than the standard mileage rate if you can show that your actual costs of operating your vehicle are higher. To do this, you must keep track of all of your vehicle expenses, including gas, oil, repairs, and depreciation. You can then use these expenses to calculate your actual cost per mile.
If your actual cost per mile is higher than the standard mileage rate, you can deduct the difference. For example, if your actual cost per mile is 70 cents and you drive 10,000 miles for business purposes, you can deduct $1,000 ($0.70 - $0.65.5) x 10,000 miles).
To claim the actual cost method, you must file Form 4562 with your tax return. On this form, you will need to provide information about your vehicle, your business miles, and your vehicle expenses.
The standard mileage rate is a convenient way to deduct your business travel expenses. However, you may be able to deduct more if you claim the actual cost method.
