Standard Mileage Rate

• If you lease your car for both personal and business uses, then the IRS permits you to write off the expenses associated with your business. If you choose to use the standard mileage rate, then you multiply the total miles driven for business by $.51 per mile to determine your total amount of eligibility. In order to claim a tax deduction on your personal tax return, you must itemize your deductions and all of your business expenses must exceed 2 percent of your adjusted gross income. You can find your AGI on line 38 of Form 1040. Your employer cannot reimburse you for any portion of the mileage that you use your car for and you must use the standard mileage rate for the entire duration that you lease the car. The IRS does not allow you to change and deduct actual expenses in a later year.