This post is part of my vehicle tax deductions tips. Read more, like earlier posts on car deductions here.
As you probably know, there are two ways to deduct business auto expenses, the actual expense method and the standard mileage rate. The standard mileage rate for any business transportation (that isn’t commuting) is a matter of taking the miles you drove and multiplying them by a rate ($0.70 for 2025). The actual expense method takes everything you spend on your vehicle such as repairs, oil changes, gas, etc. and multiply that by the percent you use the vehicle for business use only.
But what method do you use for toll roads and parking fees?
If you live in a big city or find yourself driving to a lot of conventions, the parking fees can really add up. Being able to deduct those would really help.
Fortunately, the IRS allows you to deduct toll road fees and parking fees as separate deductions, whether you use the standard mileage method or the actual expense method.
Helpful, isn’t it?
That should wrap up our tips for deducting your vehicle for business use. To have me see how you can improve how you capture deductions, reduce expenses, and meet your business goals, call me to schedule a free bookkeeping call. If I were to take most if not all of the bookkeeping off your shoulders, it can save you well over 80 hours per year.