These are costs related to the business use of your vehicle. You can use QuickBooks Self‑Employed to track the actual cost of gas, oil, repairs, insurance, tires, and license plates (but not depreciation.) Make sure you categorize these expenses as Business, and not as a split between Business and Personal. TurboTax (or your tax pro) will calculate the correct ratio in your tax return based on the total amount.

For our calculations, we use the standard mileage method of deducting other vehicle expenses, with a flat rate for each business mile driven. You can still track your actual vehicle expenses and mileage, and use that information at tax time to calculate your deduction using the actual method.

We automatically categorize these transactions for you as Car and Truck:

  • Vehicle insurance

  • Vehicle loan interest

  • Vehicle loan

  • Vehicle repairs

  • Gas and fuel

  • Parking and tolls

  • Vehicle registration

  • Vehicle lease

  • Wash and road services

* Parking and tolls only covers the expenses related to business. They are 100% deductible with both actual expenses and mileage methods. The caveat: If you have tolls or parking fees during your commute between home and regular place of work, these are considered commuting expenses and aren’t deductible.