Guide to Writing Off a Car for Business Use

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent, and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or network providers. Read more about our Editorial Guidelines and How We Make Money.
Why Might You Use a Personal Car for Business?
Can You Deduct Car Expenses When Using a Car for Business?
Deductible Expenses
Nondeductible Expenses
Other Considerations
Depreciation
Recordkeeping
Incomplete Record Tips
Employees Driving Company Cars
Qualifying for the Standard Mileage Deduction
Current Standard Mileage Deduction Rate
2025 mileage rates
Self-employed and business: 70 cents/mile Charities: 14 cents/mile Medical: 21 cents/mile Moving (military only): 21 cents/mile
Standard Mileage Deduction vs Actual Expenses
Where Do You Deduct Business Vehicle Expenses?
When you first used the vehicle for business purposes How many of the total miles were business-related Whether the vehicle was available for personal use during off-duty hours Whether you or your spouse have another vehicle available for personal use Whether you have evidence to support your deduction
What Expenses Can You Deduct if You Borrow a Vehicle for Your Business?
Can You Deduct the Purchase of a Vehicle for Your Business?
Section 179 Deductions
Section 179 Requirements
Section 179 Limits
Pros and Cons of a Business Buying a Vehicle
Pros of Using Your Own Car for Business
Cons for Using Your Own Car for Business
Ways to Fund the Purchase of a Personal Car for Business
A Word on Refinancing a Car Loan
Auto Loan Refinancing Rates Today
Frequently Asked Questions
Photo credit: iStock/AzmanL
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About the Author
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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