Yes, work-related car repairs are tax deductible. Usually, vehicle owners deduct car repairs as part of general transportation expenses, typically assessed through the IRS-determined standard mileage rate of $0.445 cents per mile. When choosing the standard mileage rate method, vehicle owners do not deduct individual expenses, but instead cover their repair costs at the standard rate.
Taxpayers can also deduct the actual expenses of owning and operating a vehicle for business purposes. This is even possible if the vehicle is only partially used for business purposes. For example, a taxpayer who uses a car half of the time for business and half of the time for personal use can deduct half of the repair costs of their tax liability. In addition, half of the following expenses can also be deducted:
- Registration fees
- Garage rent
- New tires
- Parking fees
How Do I Deduct Car Repairs From My Taxes?
When choosing the Actual Expenses deduction method, it helps to keep a mileage log that shows how often the car is used for business purposes. Taxpayers should retain all invoices, receipts and other documents that attest to cost and indicate the vehicle for which repairs, services and products were purchased.