Deducting Actual Vehicle Expenses

There are two different ways to claim a deduction for business vehicle use: Claiming a Standard Mileage Rate or claiming the expenses themselves using the Actual Expense method. This video show how Actual Expenses are calculated and claimed, a well as the pros and cons of each method.

0:00 Introduction
0:33 Standard Mileage Rate v. Actual Vehicle Expenses
2:22 Calculating Actual Expenses (with example)
7:35 Reporting Actual Expenses
6:57 Conclusion

Additional resources and information:

IRS Publication 463: "Travel, Gift, and Car Expenses": https://www.irs.gov/pub/irs.pdf/p463.pdf

IRS Publication 946: "How to depreciate Property": https://www.irs.gov/pub/irs.pdf/p946.pdf

IRS Schedule C: "Profit or Loss from Business": https://www.irs.gov/pub/irs.pdf/f1040...

IRS Form 4562: "Depreciation and Amortization": https://www.irs.gov/pub/irs.pdf/f4562...

Image and footage credits:

Storyblocks.com
Wikimedia Commons:
Fields BMW Lakelands
Jason Lawrence
Alison Chan
Ibrahim.ID

The image of "Selma" was generated by thispersondoesnotexist.com (stability.ai) and any resemblance between this image and any person, living or dead, is coincidental and not intentional.

No other artificial intelligence was used to research, write, animate, voice, or edit this video

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music

Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.