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Re: Car rental deductible vs mileage

Hi, Andrew,

So if I decide to use my car rental as a business expense (not using my mileage from the car rental), will I also be able to use mileage in the future when I drive using my own car?

And for my car rental for 4 days (Thursday, Friday, Saturday, Sunday) only used for work, the total was $230.62. I didn't drive the car on Friday at all--did not work that day. Would I be able to fully deduct $230.62 as a business expense or would I have to take 1/4 of the cost out when calculating the business expense?

Zip Code: 78744

Re: Car rental deductible vs mileage

Typically, you have to choose between basing your deduction on standard mileage rates or actual costs incurred for each car driven during the year. However, I don't think the car you rented is the same as the car that you'll be calculating the deduction based on standard mileage. So it seems to me that you can claim a portion of the car rental costs, and then also claim a deduction on your new car based on standard mileage rates.

Zip Code: 01801