ML/NJ
You need one more thing: a good tax attorney.
—You either get to deduct a certain amount per mile, or your actual expenses (gas, tolls, repairs insurance, etc.), but not both.—
That is why I kept track of mileage only. I did my own repairs and had a VERY economical car for business trips.
That is not correct. You can either:
1. deduct actual expenses (with certain restrictions, as summarized below); or,
2. use a mileage rate.
There are different mileage rates for business, charitable, medical, and moving expense purposes.
The business mileage rate includes depreciation (or lease payments), maintenance and repairs, tires, gasoline (including all taxes thereon), oil, insurance, and license and registration fees. Parking fees and tolls attributable to use of the automobile for business purposes may be deducted as separate items. Likewise, interest relating to the purchase of the automobile as well as state and local personal property taxes may be deducted as separate items, but only to the extent allowable under § 163 or § 164, respectively.
The charitable, medical, and moving expense mileage rates do not include depreciation (or lease payments), insurance, and license and registration fees. Parking fees and tolls attributable to the use of the automobile for charitable, medical, or moving expense purposes may be deducted as separate items.