Your Beater Car Can Make You A Lot Of Money In Tax Savings Or Reimbursements!

Beater Car Making You Money

Driving a beater car can make you a lot of money. As a car fanatic who has owned beater cars and luxury cars, let me explain.

After writing, Never Buy A New Car In Its First Year Of Redesign, a reader commented that he netted about $17,500 in reimbursements from driving his 2002 economy car roughly 35,000 miles. At first, I thought there was no way he could receive reimbursements more than the value of his car. Gotta be a loophole!

So like any good Financial Samurai, I decided to get to the bottom of this strange situation with some tax analysis and research. If you have a car, a business, a job that requires travel, or simply love to drive, this post is for you.

Your Beater Car As A Money Maker Or Tax Saver

The most screwed up thing about our tax code is how arbitrary it is. For example, why is the phaseout threshold $75,000 for a single person and $110,000 for a married couple in order to receive the full $1,000 child tax credit?

If you're a single mom who is earning $80,000 a year in a city like San Francisco, you can use all the help you can get! Daycare will cost $24,000 a year and a mediocre one bedroom will cost at least $30,000 a year. After taxes, you hardly have anything left for food and transportation.

Always fearful of government discrimination, I went into my tax software and set up three work mileage scenarios: 5,000, 10,000, and 50,000. Each scenario paid $600 in car interest, $200 in personal property tax, and $350 in parking and tolls to isolate the mileage deduction amount.

I also set up my income to be $300,000 as a single person to ensure everything I test in this post will work for everybody. Let's take a look!

5,000 Miles Driven For Business

Car As A Tax Deduction 5,000 Miles - beater car tax benefits

10,000 Miles Driven For Business

Car As A Deduction 10,000 Miles

50,000 Miles Driven For Business

Car As A Tax Deduction 50,000 Miles Driven - beater car standard mileage deduction

As you can tell from the charts, the more miles you drive, the more you can deduct from your income to save on taxes, regardless of how much you make! There is also no limit to the amount you can drive for business nor is there a floor on how old and inexpensive your car can be to drive such miles. In other words, we have a perfectly fair IRS deduction/benefit policy.

In 2021, the standard mileage rate is $0.56 for each business mile you drive. Therefore, if you're doing your 2021 taxes, and have 10,000 miles driven = $5,600 deduction. The true value of your deduction is therefore equal to your Total Deduction X Your Marginal Tax Rate.

In other words, if you pay a 24% marginal federal tax rate, the value of your $5,600 deduction = $5,600 X 45% = $1,344 less in taxes you get to pay. The higher your marginal tax rate, the greater the benefit.

Latest 2021 Federal Income Tax Brackets

Here's a refresher of the 2021 federal tax brackets and rates for your review. Knowing your taxes will help value your beater car.

2021 Federal Income Taxes

Very Important: A reimbursement is different than a deduction. A reimbursement is where your company cuts you a check for your expenses. You may or may not have to pay taxes on your reimbursement. If your employer reimburses you the IRS standard mileage rate of $0.575/mile but does not include it in your pay, there is nothing to claim for tax purposes. Best double check. A deduction is a non-cash figure that is used to lower your taxable income. Therefore, a reimbursement is much more valuable than a deduction.

Standard Mileage vs. Actual Expenses

Instead of using the $0.575/mile deduction for 2015 or $0.54/mile for 2016, you can choose to deduct the actual cost of all your auto expenses. Let's say you need to drive a $300,000 Ferrari for your business for some reason.

The insurance on such a car might run $10,000 a year. You also only drive it 1,000 miles a year. Instead of taking a $575 deductible using Standard Mileage, you benefit more if you deduct the actual expense of owning the car e.g. $10,000 in insurance cost, gas, oil change, garage rent, polishing, licensing, maintenance expenses, accidents, personal property tax, and business related parking and tolls.

The standard mileage deduction is supposed to be an all encompassing deduction, excluding interest, personal property tax on the vehicle, parking, and tolls. Choose the the method that benefits you the most.

Standard Mileage or Actual Deduction for Car Expenses
If you use tax software, you won't make the mistake of double dipping.

A New Side Hustle Emerges

Now that we understand the basics of how one can use a car to save on taxes or make more money, here's what you should consider doing:

1) Start a business that involves using your car. For example, I drive Rhino to see potential advertising clients all around the sprawling Bay Area. I also drive to places like Sonoma, Las Vegas, Palm Springs, and so forth in order to write about my experiences. Practically every single business requires a car, even an online one like mine.

2) Become a freelancer (schedule C) that involves using your car. Every so often I drive south to see corporate consulting clients in Silicon Valley. Each way averages 30 miles. If I go every work day, that would be 60 miles a day X 20 days a month = 1,200 miles X 12 = 14,400 miles a year. 14,400 X $0.575 = $8,280 x 33% marginal tax bracket = $2,732 less in taxes I get to pay. Then I also get to deduct all my car loan interest, personal property taxes, parking fees, and tolls related to business driving. Every consultant should start their own website to brand themselves online.

3) Own rental or vacation property. My Lake Tahoe vacation property is 200 miles away. I'm certainly able to deduct the 400 roundtrip miles (400 X $0.575 = $230) as a rental property management expense plus car interest, personal property taxes, parking and tolls each time I visit. I need to go up at least once a quarter to make sure the place is still in tip-top shape.

4) Own the cheapest, most reliable car possible for business. The IRS doesn't give you more deductions for driving a Rolls Royce rather than a Honda Civic. It's $0.575 for every mile driven no matter what type of car. If you're able to reliably drive 50,000 miles a year with a $1,000 junker, then go for it because you'll save at least $3,000 a year in taxes. An optimal car may be a 7 – 10 year old economy car that's worth $3,000 – $5,000.

5) Consider working for a company where driving is a requirement. Instead of the IRS giving you a $0.575/mile deduction, perhaps your company will give you a $0.575/reimbursement plus all related expenses. For example, let's say you drive 10,000 miles for work. Your company might just cut you a check for the full $5,750 + parking and tolls instead of you only getting $5,750 + parking and tolls X your marginal tax rate as a deduction instead. If you have zero car payments and your car only costs $500 a year to maintain, then you're making $5,000+ a year.

6) Do all the above. The perfect combo for saving/making money with a car is if you love to drive, are in a high marginal tax bracket, have no problem driving a reliable beater, own a rental or vacation property, and can work as a freelancer and full-time employee. Though it was tough for me to make money as a rideshare driver in 2015, driving helped reduce my taxable income by at least $3,500 and consequently saved me over $1,000 in taxes.

Tax Savings Is Not Free Money

Although it sounds amazing that a car can save or make you a lot of money, the reality is that one day repair costs will make your car too expensive to economically maintain. Theoretically, all your reimbursements and tax deductions are supposed to perfectly equal the loss in value of your car. As realists, however, we know this is unlikely. But like any good hustler, we try to squeeze more out of what we have.

Based on my tax calculations, I get paid to drive my leased Honda Fit. Now if I can efficiently figure out a way to rent out my Honda Fit every time I'm not using it to someone who drives a crazy amount of miles a year, perhaps I can earn some extra passive income!

Auto Insurance: If you're looking for competitive auto insurance quotes with no obligations, check out AllState. Remember you can only deduct your auto insurance expense if you choose the actual expense election instead of the mileage deduction option. You can't do both.

Tax Savings Recommendation

Start A Business: A business is one of the best ways to shield your income from more taxes. You can either incorporate as an LLC, S-Corp, or simply be a Sole Proprietor (no incorporating necessary, just be a consultant and file a schedule C).

Every business person can start a Self-Employed 401k where you can contribute up to $54,000 ($18,000 from you and ~20% of operating profits). All your business-related expenses are tax deductible as well. Simply launch your own website like this one in under 30 minutes to legitimize your business. Here's my step-by-step guide to starting your own website.

Start a simple business to pay less taxes and contribute more to pre-tax retirement accounts
Start a simple business to pay less taxes and contribute more to pre-tax retirement accounts

Updated for 2022 and beyond. Driving a beater car is still the way to go! But, you may also consider adding a dough car for show. Also check out my tax deduction rules for an SUV.

71 thoughts on “Your Beater Car Can Make You A Lot Of Money In Tax Savings Or Reimbursements!”

  1. Hello,

    My job offers standard government reimbursement or the use of a rental car which they pay for. Now there a calculator or formula I can use to see if isn’t my car is actually beneficial? Am I truly making money on it? Thanks

  2. On the other end of the spectrum, You have people driving $100K cars who put 10-20k miles on their cars every year and get peanuts back in reimbursements…

  3. Thanks for making me feel better about driving a Toyota Yaris. My workmates laugh that I don’t have an “adult car”. MileIQ and a beater car are a match made in tax deduction heaven!

  4. Your Free Cash Flow

    Yes, the good old employee auto mileage loophole. I’m pretty sure employees have been doing this since before the internet! I’ve been a field employee for nearly 3 years and have been leveraging this to my advantage. I know of several smaller companies that the sales force rack up even higher miles. Personally, I drove 22,500+ miles in 2015 in my personal $10k vehicle, had nearly $13k in reimbursement cash, and lastly netted over $10 grand tax free when factoring my gas expense ([Miles/MPG]*average weekly gas price). Sounds like you weren’t a field worker, so welcome to the party :)

  5. “For example, let’s say you drive 10,000 miles for work. Your company might just cut you a check for the full $5,750 + parking and tolls instead of you only getting $5,750 + parking and tolls X your marginal tax rate as a deduction instead. If you have zero car payments and your car only costs $500 a year to maintain, then you’re making $5,000+ a year.”

    You are forgetting Gas!

  6. I drive a mid-2000’s Toyota Camry and put 15 to 20k miles a year on it. One additional point to note is that if you work for a company like mine, I have a set expense budget for the year. I ALWAYS hold back mileage to end of the year (as only expense rule is by year end not within a certain period from incurring expense) and make sure I get all dining expenses reimbursed under company expense budget and any mileage that goes over limit I include in my personal taxes. The govt slashes dining by 50% so I let the company take that hit.

  7. Smartest Women on the Internet

    I believe that one can not deduct mileage expense for rental property management unless you meet the IRS definition of a real estate professional (Pub. 527, pgs. 4, 13).

    I own one rental property. I work a full-time corporate job, unrelated to property management; and my employer reports my annual earnings on a W2. I cannot deduct mileage expenses incurred for managing my one rental property.

  8. As someone who recently started a blog (thanks to the ever constant encouragement here at FS), I wonder if I can lower my minuscule tax bill further. I’ll have to look into it come next February.

    My 05 Impala with 64k miles on it may have gotten just a bit more valuable!

  9. Your first sentence “Never buy a new car in first year of redesign”… How about buying the first year of a new design?… a la disruptive Tesla. I put 1k deposit on a model 3 when the website opened. That Elon Musk is a smarty in so many ways, opened the door to get in line before he even showed the working prototypes. received over 100,000 orders (including mine) sight unseen. Then once seen orders ballooned to 280,000 with first delivery not expected until end of 2017 at best. Are the 280k of us crazy?

      1. that would be the prudent view (2 years) except there will likely be no rebate (which is significant $) from Feds or CA by then. Plus there will also likely still be a very long waiting list if its a winner.

  10. Joe Sixpack

    My buddy has a traveling sales job and he got around $25k in reimbursements last year. His car is an old Hyundai that has a blue book value of no more than $1500-2000.

  11. Delivery Boy

    You have left out the best thought of them all. I am an attorney and my client pays mileage. I get a rental car with a company that allows unlimited mileage. My beautiful BMW sits in the garage while I grab a rental and put hundreds of miles on it and get reimbursed. Let’s say I get a car for $19.00 a day. I do a round trip at 500 miles. Gas is equal whether it is my car or the rental so that is a wash. So $250.00 ($ .05/mile), less $19.00 (rental fee) equals a beautiful $231.00 in reimbursement. Pure cash. Can you say no W2! Can you say turn on my UBER app? Forget taxes, depreciation, etc. on your own car. Plus, I do not allow my kids to eat in my BMW. But the rental? Kids, I am coming home and lets go get some food! Hah . . . Sonic!!!

  12. Ahhh!!! It won’t let me reply on the thread post above.

    But one thing…I think this website and you are great! Even if I disagree with a couple things :)

    My path is slowly evolving. Here are steps I am taking:

    I’m 29 and have been working at a job with a six figure income the past couple years. I’ve been aggressively saving on that. Before this I was making 35k a year.

    I would say I have a good amount of cash saved up. I have recently been investing my money with fix and flippers for high returns. I’ve just bought my first rental. This will help me start to realize losses on my taxes too. I have invested in P2P lending. I think it’s great for most people, but I want more return ;) Believe me, it’s out there. People don’t become wealthy with 10% interest….well unless they start out with large capital or become wealthy that way when they reach 80 years old.

    My goal is to become financially independent within a few years. I want to leverage other countries’ currency by living there. I only want to make income up to a certain threshold where I will not end up paying federal income tax. I am willing to give up a life of luxury to do this….but still live comfortably. I have no problem with the idea of local and state tax. But federal is off limits for me.

    How do I fight the system?

    I don’t waiver on my principles. For example, I will probably vote for a 3rd party candidate in the presidential election (even thought the president isn’t very important). Probably libertarian party. People who say I am “throwing my vote away” or “giving my vote to the Democrats” are getting fed that crap by….who?….republicans. The same republicans who double the national debt and created no child left behind. When you choose the lesser of two evils, you are still voluntarily choosing evil. So, not letting myself succumb to all the BS that our “society” spews out is the main thing….Thinking for oneself.

    Then I also try to influence others!

  13. Sam,

    Thanks for this detailed post. Your ideas remind me of a story my grandfather told me when I was just learning how to drive. During WWII, he picked up a job delivering newspapers just so he could receive the advantage of gas stamps. Needless to say, grandpa was always thinking – and he always had a full tank of gas!

  14. Eric Bowlin

    It’s so generous of the government to allow us to keep more of our money for legitimate business expenses. :-)

    Great info though. Wish I had this article 5 years ago when I first started using my car for business! Would have saved me a lot of effort.

  15. The one thing I don’t like about “tax deductions” is that you have to spend money in order to get the benefit. And even then….you are only saving a percentage of what you taxable rate is. For example: If you spend $10,000 on car expenses, that all money out of pocket. Now you deduct that from your taxable income (say…28%?) and you now save approximately $2,800 in actual taxes. The $10,000 deduction is deceiving to me. I’d rather focus on how to reduce my taxes other ways than having to spend more money.

      1. I guess I can agree with that if you are already doing it. But to me, the whole thing feels a little like begging.

        Can you tell I’m a libertarian ;)

        Also, when my girlfriend tells me how much she saved after shopping sales, coupons, etc…I ask her, did you still spend money? lol

          1. That’s what people in Germany said when Hitler was in power ;)

            The founding fathers fought the system and won. FIGHT THE SYSTEM (if it’s wrong). Don’t be a sheep. Have courage!

      1. Set up a space in your home for your “administrative office”. Take your home office deduction. Start and end your days at your “administrative office”. Now your commute is from your bedroom to your administrative office. Trips from your administrative office to your other destinations are now tax deductible.

  16. I wonder if the employer who offers the reimbursement for your mileage can claim any tax breaks. I’d would assume that if the employer does, then a form would be filled out to the IRS.

    Great scenarios on maximizing out the mileage. Obviously if I had the choice, I’d find a job that minimizes the amount of downtime of commuting (you can only listen to so much through audiobooks!)

  17. PatientWealthBuilder

    Your post is interesting because I am in a similar situation. I have this car from the 90’s and have to do some driving for work from time to time. I was amazed at the reimbursement rate that my company was giving me! I realized it was this huge bonus but unfortunately there really isn’t any way to take large advantage of it – especially because I want to do the right thing for my company. But I do get a smile on my face when I drive my old car for work. Also, I understand the value of doing one’s own taxes. The details really make the difference and can help you really understand what things can save you money and what things are costing you. Once you know that though – I can’t imagine continuing to do them. Its miserable and impossible to get it right.

  18. Hey Sam, nice to know. Does having to know all this make you want to just let an accountant do it so you don’t have to? I’m surprised with someone of your wealth/earning power that you’d value doing your own taxes (and potentially missing a (legal) deduction) over an accountant doing it for you.

    Tristan

    1. It doesn’t b/c this post is more about changing one’s behavior. Perhaps a great accountant will advise you to do all the things I’ve suggested in this post, but usually, the accountant just says “give me all your documents to input” and then tell you the output.

      Tax software is almost stupid proof now. I added a screenshot of the Standard Mileage and Actual Expense choice one can choose. Whichever one chooses, they then input their miles or expenses and the tax software does it for you. A normal accountant is just a data entry person.

      So perhaps I might be so bold as to say that my posts on taxes are much more valuable to the typical person (and free) b/c I talk about strategies to maximize reducing tax liability and making more money. The tax software won’t allow me to miss a legal deduction.

  19. Another good way is to use your Flexible Spending Account to reimburse your miles to a medical visit. I have to go 120 miles roundtrip. This year’s rate is 19 cents/mile, so I get $22.80 tax-free. Not the greatest money-saving scheme, but take it where you can especially when you have to drive to doctors and specialists.

    1. Does the ability to take this deduction occur only when the commuting expenses totals a certain percentage of your MAGI?

  20. Apathy Ends

    Interesting post Sam – we have a Family LLC and are looking for a house to flip, will have to look into this since driving around from house to house can add up quickly

    Thanks for the tip!

  21. Kevin @ thebeatercar.com

    At my previous job, I was always the first to volunteer to drive anywhere. At the Federal rate of 57 cents/mile, I knew I was making money because my old beater truck required very little to keep it rolling other than gas.

    Yet another reason to drive the oldest, most dilapidated jalopy you can find…:)

    Thanks for the article.

  22. Preston @TheDrunkMillionaire

    Interesting stuff. I recently “side hustled” my work truck by flipping it. At the end of the lease (through my company) they offered to sell it to me $3K under KBB. I promptly took them up on it and sold it at private value on Craigslist and netted ~2.5K. Boom: mortgage taken care of for April.

    1. Not bad! There’s so much stuff one can do to make money with a used car. I used to do it all the time. But, as I got older and wealthier, the benefits in doing so waned. Hence, I decided to lease my Honda Fit to eliminate dealing with others to sell one day. I’m paying for convenience.

  23. Any info on use of motorcycles or electric bikes and using standard mileage deduction? Could increase margins significantly.

  24. Very interesting…I need to find a job that fits your criteria where I’ll get paid for owning my car! And your statement: “The most screwed up thing about our tax code is how arbitrary it is” So true and I just posted about that yesterday. One example I used was someone in NYC with a MAGI of $80,000 with $100,000 student loan debt…that person (if filing single) wouldn’t be able to use the student loan deduction while someone in a low cost of living area with MAGI of under $65,000 and $30,000 in student loans could. Higher cost of living and amount of debt is not taken into account.

    1. Yep, it’s too bad s/he can’t deduct the interest on his student loans. It would be pretty easy for the Federal Gov’t to create a High, Medium, Low COL adjustment for those throughout the country. But that would cost them money and time. Be greedy I guess.

  25. Hi Sam, I’m a long time reader and fan of your site but a first-time poster like you noted last week: “…a great many of you who read, but never comment. Don’t be shy!”

    I thought this would be the perfect time for me to chime in as this article is right up my alley. As a Federal Government employee, I receive the IRS mileage as reimbursement alongside my travel per diem rather than as a deduction on my annual taxes. Therefore, rather than taking it at the marginal tax rate, I receive it tax-free and in full. As you suggest in your post, I am driving a 7.5 year old Honda. I don’t think I’ve paid beyond my mileage reimbursement for gas or maintenance since I started working this job after college about 2 years ago! Problem is I am a ‘car guy’ and my friends aren’t helping with my discipline as one bought a sweet E63 AMG. (He isn’t Gov!)

    I cannot double dip by also claiming the mileage on my taxes. The other edits you made based on the comments above (2015/2016 rate and standard/actual expense) are correct.

      1. Ha! Believe it or not, he is actually getting ready to start Medical School this fall. Good thing the family is very well off. He started buying rental properties when we graduated from high school. Maybe I can get in on the action (minority partner or something) as I seek FI… Any tips for someone with a small capital base looking to get into rental properties or CRE?

  26. Mileage deduction or reimbursement has really worked in my favor. I have a bookkeeping part-time job. At times, I have to travel couple of hundred miles from time to time. This mileage deduction is beneficial because I am able to reduce my tax liabilities instantly.

    Other than the mileage deduction, I have been able to deduct part of the maintenance costs of the car. Whether these costs make a big dent in my tax liabilities, that I have to check closely.

    But having a car and using it for business purposes can pay off in the form of lower tax liabilities.

  27. Just make sure you keep a driving “log” record of all your business trips in case of a friendly IRS audit….

  28. Aliyyah @RichAndHappyBlog

    Wow. I never knew you could deduct so much for your car mileage as a business expense. I don’t own a car, so this doesn’t apply to me. Still good to know though.

  29. Apparently there is a way to rent out your car. Though I am unsure whether it could be efficiently worked around actually using the car.

    Here’s something I found a while back.

    https://turo.com/list-your-car

    Unfortunately, mine is a near clunker, but wondering if I could lease and see if this (or even uber) could over-compensate the lease.

    1. Yeah, there’s GetAround and a bunch of other companies where you can rent out your car. Could be good! But could also be very, very bad and a hassle if the renter crashes it.

    1. Excellent find! As I am still doing my 2015 taxes my tax software had $0.575/mile standard mileage deduction for this post. That’s pretty interesting the deduction dropped to $0.54/mile. Post edited to reflect the change. thx.

      1. Any theories on the rationale for dropping the deduction? It seems a bit arbitrary to base it on the price of oil, so surely there must be some other economic barometer that the IRS uses to make these decisions.

  30. “My Lake Tahoe vacation property is 200 miles away. I’m certainly able to deduct the 400 roundtrip miles (400 X $0.575 = $230) as a rental property management expense plus gas and tolls each time I visit”

    Are you sure you can actually deduct both the standard deduction and all the expenses, like gas? I believe it is either the standard deduction or the actual costs – which would include gas. Good point about economical cars though, it worked for me.

    1. No, that’s unclear and wrong. If you elect Standard Mileage deduction, you can only deduct the standard mileage deduction of $0.575/mile for 2015 + the following expenses:

      Interest on car loans
      Personal property taxes
      Business-related parking and tolls

      Everything else like gas, oil change, maintenance, insurance would be under the Actual Expenses election. Can’t double dip, and the good thing is that online tax software WON’T let you double dip.

      I’ve clarified the post with this paragraph:

      Standard Mileage vs. Actual Expenses: Instead of using the $0.575/mile deduction for 2015 or $0.54/mile for 2016, you can choose to deduct the actual cost of all your auto expenses. Let’s say you need to drive a $300,000 Ferrari for your business for some reason. The insurance on such a car might run $10,000 a year. You also only drive it 1,000 miles a year. Instead of taking a $575 deductible using Standard Mileage, you benefit more if you deduct the actual expense of owning the car e.g. $10,000 in insurance cost, gas, oil change, garage rent, polishing, licensing, maintenance expenses, accidents, personal property tax, and business related parking and tolls. The standard mileage deduction is supposed to be an all encompassing deduction, excluding interest, personal property tax on the vehicle, parking, and tolls. Choose the the method that benefits you the most.

      Thanks for highlighting!

      1. Physician On FIRE

        Thanks for clearing that up. I saw the original on Feedly and thought… wait a minute… I was once an accidental landlord on a couple properties.

  31. Getting To One Million

    I get paid $40 a month after taxes by my job for carpooling. They add it to my paycheck each month. People should look into that also.

  32. FS,

    One respectful correction. As you stated, a taxpayer can claim a deduction using the standard $.575/mile rate or claim actual expenses. But a taxpayer cannot claim the standard deduction + actual expenses such gas, maintenance, insurance, and lease payments because the standard deduction is meant to include “depreciation, insurance, repairs, tires, maintenance, gas and oil”, per the publication on the IRS’s website for 2015.

    Parking and tolls expenses are fine though.

    I’d respectfully recommend editing 2 & 3 under side hustle to reflect that actual expenses + standard deduction can’t be claimed since you’ve listed multiple actual expenses to be claimed in addition to the standard deduction besides parking + tolls. Of course, if I’m wrong, I’d be happy to know that too!

    1. Edited and clarified with this paragraph. Thanks!

      Standard Mileage vs. Actual Expenses: Instead of using the $0.575/mile deduction for 2015 or $0.54/mile for 2016, you can choose to deduct the actual cost of all your auto expenses. Let’s say you need to drive a $300,000 Ferrari for your business for some reason. The insurance on such a car might run $10,000 a year. You also only drive it 1,000 miles a year. Instead of taking a $575 deductible using Standard Mileage, you benefit more if you deduct the actual expense of owning the car e.g. $10,000 in insurance cost, gas, oil change, garage rent, polishing, licensing, maintenance expenses, accidents, personal property tax, and business related parking and tolls. The standard mileage deduction is supposed to be an all encompassing deduction, excluding interest, personal property tax on the vehicle, parking, and tolls. Choose the the method that benefits you the most.

  33. I don’t drive that much so I never thought about getting a deduction worth more than the value of your car. Neat! Love the different scenarios you included.

    My mom deducts mileage for all of her medical appointments. That’s something for folks to consider who have to deal with the unfortunate circumstances of frequent doctor and hospital visits.

    1. Small Clarification on Medical Untemplater:

      19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015

      Additionally, if you do Charitable things:

      14 cents per mile driven in service of charitable organizations

      ~T~

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