If you use your personal vehicle for your business, the IRS allows you deduct vehicle related expenses as part of operating your business. You can use one of two methods: the Actual Expenses method, or the Standard Mileage Method. Each method requires different record keeping requirements and can produce varying results. Generally you go with the method that produces the largest tax deduction. The actual expenses method requires you to track and add up all of the money spent on operating your vehicle (gas, insurance, maintenance, etc) and take a percentage of the vehicle's business use. So, if you estimate you use your vehicle 30% of the time for business, you would deduct 30% of those total costs. The Standard Mileage Method requires you to track the total miles driven for business during the year. Multiply the total miles driven by the standard mileage rates published by the IRS for that tax year.