The actual cost method is a more-flexible way to compute the auto expense deduction and often results in a larger tax savings.

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The actual cost method allows taxpayers to deduct the actual expenses incurred for business use of their vehicle, including gas, oil, repairs, maintenance, insurance, and depreciation. This method may result in a larger deduction than the standard mileage rate method and allows for more flexibility in tracking expenses.

The Actual Cost Method Is a More-Flexible Way to Compute