Line 9 on Schedule C of the tax form relates to “Car and Truck Expenses,” which refers to the costs associated with using a vehicle for business purposes. If you use a vehicle for business, you can deduct the expenses associated with using that vehicle on Line 9 of Schedule C.
The expenses you can deduct on Line 9 include:
- Depreciation: This is the cost of the vehicle spread over its useful life. You can either deduct the actual expenses incurred, or you can use the standard mileage rate set by the IRS.
- Gas and oil: You can deduct the cost of gas, oil, and other related expenses.
- Repairs and maintenance: You can deduct the cost of repairs, maintenance, and servicing of your vehicle.
- Insurance: You can deduct the cost of insuring your vehicle.
- Tolls and parking fees: You can deduct the cost of tolls and parking fees associated with using your vehicle for business purposes.
- Registration fees and taxes: You can deduct the cost of registration fees and taxes related to your vehicle.
It’s important to note that you can only deduct the expenses that are directly related to using your vehicle for business purposes. If you also use your vehicle for personal purposes, you must keep accurate records to determine the percentage of time the vehicle is used for business purposes. You can then deduct that percentage of the total vehicle expenses on Line 9.
You must keep accurate records of your vehicle expenses, including receipts, invoices, and other documentation, in case you are audited by the IRS. If you use the standard mileage rate to calculate your vehicle expenses, you should also keep a log of the miles driven for business purposes.