J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 43Deducting Car and Truck Expenses

43.1	Standard Mileage Rate	752
43.2	Expense Allocations	753
43.3	Depreciation Restrictions on Cars, Trucks, and Vans	754
43.4	Annual Ceilings on Depreciation	755
43.5	MACRS Rates for Cars, Trucks, and Vans	756
43.6	Straight Line Method	761
43.7	Depreciation for Year Vehicle Is Disposed Of	762
43.8	Depreciation After Recovery Period Ends	762
43.9	Trade‐in of Business Vehicle	763
43.10	Recapture of Deductions on Business Car, Truck, or Van	763
43.11	Keeping Records of Business Use	765
43.12	Leased Business Vehicles: Deductions and Income	765

The costs of buying and operating a car, truck, or van for business are deductible under rules hedged with restrictions. Depreciation deductions for most cars, trucks, and vans are subject to annual ceilings, but for vehicles placed in service in 2022 and used 100% for business, bonus depreciation allows a first‐year depreciation limit of $19,200 (43.5). The cost of heavy SUVs used 100% for business that are placed in service in 2022 can be fully deducted in 2022.

To avoid accounting for actual vehicle expenses and depreciation, you may claim an IRS mileage allowance. The allowance is 58.5 cents per mile for the first half of 2022 and 62.5 cents per mile for the second half of 2022. Keep a record of business trip mileage.

If you are self‐employed, you deduct your vehicle expenses on Schedule C (40.6). Use Form 4562 to compute depreciation if you claim actual operating ...