The short answer is yes, but you'll need to do some calculations to determine how much can be deducted. This can be determined by using either the standard mileage method or the actual expense method. There are some situations when you must use the standard mileage rate, like when claiming a Section 179 deduction in the previous tax year.
The standard mileage method is most commonly chosen because of its easier record-keeping requirements. Under this method, you can deduct a set amount for each business mile that you drive. For the 2019 tax year, the standard mileage deduction rate was 58 cents per business mile.
If you use the actual expense method, you're allowed to deduct the actual costs you incur each year to operate your car for your business, plus depreciation. This can include costs for:
- Oil changes;
- Licensing fees;
- Tolls; and
- Car Washes.
However, if any of these expenses were related to your personal use of the car, they could not be included in your deduction calculation.