I purchased a car for $19K; $6K was paid upfront, and the rest is financed over 3 years. Is there a way I can deduct the car purchase in certain circumstances? This vehicle is primarily used for work. I am in the U.S. and work as a consultant to a company.


IRS Publication 463 is a great resource to help you understand what you can and can't deduct.

It's not a yes/no question, it depends on the exact company use, other use, and contemporaneous record keeping.

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  • 2
    Contemporaneous record keeping is also essential if you want to write off any miles as community service. – keshlam May 20 '15 at 19:19
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    Deducting miles as part of your itemized medical expenses too. – JTP - Apologise to Monica May 20 '15 at 19:21

You've got two options.

  1. Deduct the business portion of the depreciation and actual expenses for operating the car.

  2. Use the IRS standard mileage rate of $.575/mile in 2015. Multiply your business miles by the rate to calculate your deduction.

Assuming you're a sole proprietor you'll include a Schedule C to your return and claim the deduction on that form.

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