Can I Write Off My Car? A Guide for Content Creators
As a content creator, you know the importance of keeping your finances in check, especially when it comes to tax season.
If you’ve started thinking about your taxes and looking at what is actually deductible, you may be wondering, “Is buying a car a tax write-off?” The good news is that there are ways to deduct car-related expenses — but only if you’re using your vehicle for business purposes. Let’s break it down.
What Does It Mean to “Write Off” Your Car?
Writing off your car essentially means deducting certain expenses related to its use on your tax return. This can help lower your taxable income, which means you’ll owe less in taxes (or might even get a refund). However, the IRS has rules, and they’re strict about separating personal and business use.
If you’re using your car solely for personal errands or weekend road trips, you won’t be able to claim any deductions. But if your car is helping you create content, haul content-related materials from the store, meet with clients, or attend business-related events, then you might be eligible.
Is Buying a Car a Tax Write-Off?
Buying a car can qualify as a tax write-off if it’s used at least 50% or more for business purposes.
If you use your car for both business and personal activities, you’ll need to document what you use your car for and when so you can figure out what is actually deductible. You’ll want to track the percentage of time spent on each. For example, if 60% of your car’s use is for driving to photo shoots, filming locations, or client meetings, then 60% of the expenses can be written off.
How much of the vehicle’s purchase price you are able to write off depends on the year you purchased it, the vehicle’s weight, and how much you used it for content purposes. For 2025, you can write off a maximum of 40% of the vehicle’s purchase price in the year you buy it.
For example, if you purchase a $50,000 vehicle in 2025 and you use the vehicle for 50% business, then you would be able to write off $10,000 of the purchase price in 2025 ($50,000 x 40% Section 179 deduction x 50% business use). The remaining vehicle deduction would be spread out over the next 5 years.
How to Keep Track of Your Car’s Business Use
Always remember this: the IRS loves documentation. To maximize your deductions and avoid any red flags, keep detailed records of how you use your car for your business. Here are some tips:
- Mileage Log: Use an app or a notebook to track business-related trips. Note the date, purpose, and number of miles driven.
- Receipts: Save receipts for gas, maintenance, repairs, and insurance.
- Calendar Proof: Document business-related events, meetings, and shoots in a calendar. This can serve as evidence if needed.
Methods for Writing Off Your Car on Your Taxes
There are two main methods of deducting your car from your taxes: standard mileage deduction or actual expenses method.
To use the standard mileage deduction, you track the miles you drive — using an app or a paper log — and use the IRS standard mileage rate to calculate the total deduction you are eligible for. For 2024, the rate is 67 cents per mile. So if you drove 6,000 miles for business use and 12,000 miles for personal use in 2024, then your deduction is $4,020 (6,000 business miles x $0.67 mileage deduction). The IRS calculates this rate every year, so always check before filing your taxes.
If you use your actual expenses, you’ll need to keep records of all the money you spend on your car throughout the year as well as the percentage of use for business. Your expenses could include gas, insurance, maintenance, repairs, and depreciation. You would add up all eligible expenses, then calculate the percentage used for business to get your total deduction. For example, if you spent $12,000 on your car over the course of 2024, and your business percentage is 60%, then your deduction would be $7,200 ($12,000 x 60% business use).
The actual expense method could yield a higher deduction, but the standard mileage deduction may be easier.
There are some other expenses that you can deduct separately, no matter which method you choose, such as tolls and parking fees. There may be other travel or meal expenses you can write off, also, so make sure you’re keeping receipts for everything you do related to your business.
Common Mistakes to Avoid
- Mixing Personal and Business Use: Always separate personal trips from business trips. It’s tempting to count that Starbucks run as “work-related,” but unless you’re meeting a client or doing work while there, it’s probably not.
- Failing to Document: If you’re audited, the IRS will want proof. No records? No deduction.
- Overestimating Business Use: Claiming 100% business use might raise eyebrows. If you are using your car exclusively for work, make sure you keep great records to prove that you’re not mixing business and personal in your car.
Final Thoughts
So, can I write off my car? It can be, as long as you’re using it for business purposes and keeping proper records. Need help figuring out your car deductions — or answers to other tax questions? We can help. Book a call with us to get started.
