Submitted By: someone
Answered: September 26, 2018 10:03 pm

I have a 2004 Honda Accord that I drive for business. Can I use the standard mileage rate for this old car?

The age of the vehicle does not determine whether you can claim the standard mileage rate. For 2018, you must be self-employed to claim deductions for business driving. And you must choose to use the standard mileage rate (and not deduct actual expenses) for the first year the vehicle is used for business. Also you can’t have 5 or more vehicles in your business. Otherwise you’re good to go (at 54.5 cents per mile in 2018).

advertisement
Tax Glossary

Foreign tax credit

A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?

More terms