Chapters (Time Stamps):
0:00 Introduction
0:53 Car Expenses
2:13 Vehicle tax deduction rules
3:15 Why tracking mileage is important
4:09 Which is better standard mileage or actual expenses?
4:47 Can I deduct my car payment
5:15 Writing off the cost of your car (full example)

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This is obviously great news, but there are a few stipulations.
1. The car has to be used in a business capacity for your parttime side hustle or full-time business
2. You cannot deduct your miles and actual expenses, but you may choose one or the other.
3. Once you file a tax return taking the actual mileage deduction for that vehicle you cannot go back to taking the standard mileage deduction for that vehicle.


To properly track your miles via paper or electronically consider the following:

1. What are the total miles you drove during the year.
2. Of those total miles, how many were specifically for business purposes
3. Brief description of the business purpose of the trip. (Went to see a client to perform a job, networking conference, miles to gather materials and supplies, etc.)
There are plenty of mileage tracking apps you can utilize on your phone, but ultimately use whatever method works best for you. If pen and paper works best, use pen and paper. Doesn't matter how it is tracked as long as it is tracked.

For example if you spent $5,000 in various vehicle expenses throughout the year and you use your car for business purposes 40% of the time you can deduct $2,000 of those expenses against your business income on your tax return.