You and your small business are likely to incur a variety of local transportation costs each year. Commuting costs aren’t deductible but the cost of any local trips you take for business purposes is a deductible business expense. Your deduction can be computed using actual expenses or a standard mileage rate (58.5¢ per business mile driven between Jan. 1 and June 30, 2022, and 62.5¢ per business mile driven between July 1 and Dec. 31, 2022) plus tolls and parking. Actual expenses include depreciation (subject to limitations), gas, repairs, maintenance, insurance, tolls, parking, loan interest and any other related costs allocable to the business portion of using the vehicle.
