Farm Income - Car and Truck Expense

You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual ex-penses if you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.

You can take the standard mileage rate for the tax year only if you:

Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or

Leased the vehicle and are using the standard mileage rate for the entire lease period.

If you take the standard mileage rate:

Multiply the number of business miles driven by 56 cents for 2021 (57.5 cents for 2020)  (57.5 cents for 2019) and

Add to this amount your parking fees and tolls, and enter the total on line 10.

Do not deduct depreciation, rent or lease payments, or your actual operating expenses.

If you deduct actual expenses:

Include on line 10 the business portion of expenses for gasoline, oil, repairs, insurance, license plates, etc., and

Show depreciation on line 14 and rent or lease payments on line 24a.

If you claim any car or truck expenses (actual or the stand-ard mileage rate), you must provide the information requested on Form 4562, Part V. Be sure to attach Form 4562 to your re-turn.

For details, see chapter 4 of Pub. 463.