Personal Vehicle

• You can use your personal vehicle as a necessary part of your self employment, and you can deduct the IRS-allowed mileage expenses on your tax return. When a vehicle is used for both business and personal travel, you must separate the mileages used for each purpose. Another means of deducting your vehicle costs is to file a return showing your actual out-of-pocket expenses for the business use of the vehicle.
  
  

Vehicle Information

• The IRS requires certain information on your vehicle and its use in addition to the number of business miles driven. You must report the date you began using the vehicle for your business. It will also be helpful for you to know the mileage on the vehicle on that date and on each January 1 while you are using the vehicle for business. You also need to tell the IRS if the vehicle was available for personal use when not being used in your business and if you or your spouse (if applicable) had another vehicle available for personal use.
  
  

Vehicle Mileage

• You are asked by the IRS to report the total miles the vehicle was driven in the tax year divided into three different categories. The first category is business, the second is commuting and the third is other. You are then asked if you have evidence to validate the deduction and if the evidence is written.
  
  

Mileage Rates

• There is at least one standard mileage rate for each tax year that applies to self-employed persons claiming mileage expenses. In some years there may be different rates for particular periods of the tax year. This points out the need to keep dated records for the mileage you claim on your tax return; so you can substantiate the miles you claim. Standard mileage rates can be found on the IRS website.