
The amount of a car you can write off for business depends on whether you use the standard mileage rate or the actual expense method. For 2024, the IRS standard mileage rate is 67 cents per business mile. Alternatively, you can deduct the actual costs of operating the car (like gas, , and depreciation) based on the percentage of business use. There's no single "total amount" you can write off; it's calculated annually based on your documented usage. The key is maintaining a detailed mileage log and other records to substantiate your claim.
The most critical first step is determining your business-use percentage. If you drive 15,000 miles total in a year and 12,000 are for business, your business-use percentage is 80%. This percentage is then applied to your vehicle's expenses.
Standard Mileage Rate Method This is often simpler. You simply multiply your total business miles by the annual IRS rate.
Actual Expense Method This method involves tracking all costs associated with the car. You can deduct the business portion of:
If your car is expensive or has high operating costs, this method can yield a larger deduction. However, it requires much more detailed record-keeping.
Depreciation Limits When using the actual expense method, the IRS sets annual caps on how much depreciation you can claim. These limits are higher for vehicles that qualify for bonus depreciation (typically new vehicles weighing over 6,000 pounds).
| Vehicle Placed in Service | Year 1 Limit (Standard Car) | Year 1 Limit (Heavy SUV > 6,000 lbs)* | Year 2 Limit | Year 3 Limit | Year 4 & Later |
|---|---|---|---|---|---|
| 2024 | $20,400 | Up to $30,500 (80% bonus dep.) | $19,500 | $11,700 | $6,960 |
| 2023 | $20,200 | Up to $28,900 (80% bonus dep.) | $19,500 | $11,700 | $6,960 |
| 2022 | $19,200 | Up to $28,900 (100% bonus dep.) | $19,500 | $11,700 | $6,960 |
| 2021 | $18,200 | Up to $28,900 (100% bonus dep.) | $16,400 | $9,800 | $5,860 |
*Heavy SUVs are subject to different rules and can offer significant first-year deductions. Consult a tax professional.
You must choose the standard mileage rate in the first year you use the car for business. After that, you can switch methods. Meticulous records are non-negotiable. Use a dedicated app or a notebook in your glove compartment to log the date, mileage, destination, and purpose for every business trip.

As a freelance photographer, I track every mile driven to client shoots, locations, and the store for supplies. I use the standard mileage rate because it’s dead simple. At the end of the year, I just total my business miles from my tracking app and multiply by the IRS rate. Last year, I drove about 8,000 miles for work, which wiped a nice chunk off my tax bill. The hardest part is just remembering to log the trip when you start the car.

The write-off isn't a single number. It's a calculation based on how much you truly use the car for business. You need to separate personal from business use. The IRS wants to see a clear log—dates, miles, where you went, and why it was for business. If you can't prove it, you can't deduct it. Think of it this way: the more you drive for work, the more you can deduct. But the deduction is only for the business portion, never the personal.

I run a small contracting business with two trucks. We use the actual expense method because these vehicles are workhorses—they get terrible gas mileage and require a lot of upkeep. We track everything: fuel, repairs, even the loan interest. At tax time, we calculate what percentage of the total miles were for job sites. That percentage of our total annual truck expenses becomes the deduction. It’s more paperwork, but for us, it results in a much larger write-off than the standard rate would.

For gig workers like me doing food delivery, it's all about the mileage. I use an app that automatically tracks my miles while I'm logged into the delivery platform. I don't bother with individual gas receipts or oil changes. I just take the total business miles the app gives me and use the standard IRS rate. It's straightforward and perfect for this kind of work where you're constantly driving. My advice is to automate the tracking; it saves a huge headache and gives you the proof you need if the IRS ever asks.


