Ask the Tax Editor: Questions on Vehicle Expenses

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Each week in our Ask the Tax Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers on deducting vehicle expenses, including the standard mileage allowance. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Standard mileage rate for Schedule C business driving

Question: I am retired but work part-time as a basketball referee. I am an independent contractor and file Schedule C. Can I claim the standard mileage allowance for driving from my home to the game site and back home?

Joy Taylor: Generally, no. The cost of business driving for self-employed individuals is a deductible business expense. However, the IRS generally considers the miles driven from your house to your first game site and the drive from your last game site back to your home as nondeductible commuting expenses. However, if you have multiple game sites in a day, you can claim the mileage traveling between game sites.

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2. Employee driving

Question: I am a full-time employee and I get a W-2 each year. Sometimes, my job requires that I drive my own car between client meetings. My company doesn't reimburse me for any miles driven. Can I deduct the mileage expense on my tax return?

Joy Taylor: Unfortunately, no. Prior to 2018, employees who itemized on Schedule A were able to deduct miscellaneous itemized deductions, including their unreimbursed employee business expenses, to the extent the total amount exceeded 2% of adjusted gross income. The 2017 Tax Cuts and Jobs Act temporarily suspended these miscellaneous itemized deductions, and last year's "One Big Beautiful Bill" ended them permanently.

3. Buying a large pickup truck

Question: I bought a large pickup truck in March that I use 100% for my Schedule C business. I heard that I can expense the entire cost on my 2026 federal tax return. Is this true?

Joy Taylor: It depends. Yes, the federal tax laws allow self-employed individuals who buy a big truck that they use 100% for business to expense the full cost. However, there is a key limit to know when expensing business assets. The total amount expensed under Section 179 cannot exceed the taxable income from your business. First-year bonus depreciation doesn't have this limitation.

4. Tax breaks for business vehicles bought in 2026

Question: I am self-employed and am planning to buy a vehicle that I will use 100% in my business. Can I take a depreciation deduction for the auto?

Joy Taylor: Yes, you should be able to. There are generous tax breaks for business vehicles first put in use in 2026.

For passenger vehicles, with first-year bonus depreciation, the first-year depreciation deduction is $20,300 for new and used cars. The second- and third-year depreciation caps are $19,800 and $11,900. After that, it is $7,160.
For passenger vehicles for which bonus depreciation is not taken, the first-year depreciation cap is $12,300.
For heavy SUVs, you can write off the full cost, thanks to bonus depreciation.
For big pickup trucks, you can expense the full cost. Note that the total amount of business assets expensed can't exceed the taxable income from your business. Bonus depreciation does not have this limit.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

Disclaimer

Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts in this Q&A series are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not, and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.