Can I write off my car as a creator?
Short answer
You can write off the business share of your car, using either the IRS standard mileage rate for business miles or your actual car costs, as long as you track your business miles.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
Two ways to deduct it:
- Standard mileage. Multiply your business miles by the rate the IRS sets each year. Simple, and often the better choice for an everyday car.
- Actual costs. The business percentage of gas, insurance, repairs, registration, loan interest and depreciation. It can be bigger for a more expensive car you use mostly for business.
What counts as business driving: going to shoots, brand meetings, buying props, events and creator meetups.
The part most creators miss is tracking. Use a mileage app from day one. A log rebuilt from memory at year-end rarely holds up.
A few things we get asked:
- Using the car more than 50% for business opens up larger depreciation options.
- Paying off your car loan early doesn't increase your deduction. That cash may do more in your business or a retirement account.
- Buying a car for the deduction only makes sense if you needed the car anyway. A write-off saves a percentage of the cost, not all of it.