If you drive a company car as a self-employed person or as an employee, the tax office generally assumes that you also use it for private purposes. In most cases, you will have to pay tax on this company benefit/perk. There are two options available to you: either you record the frequency and duration of all business and private trips in a detailed mileage log, known as the Standard Mileage Deduction. Or, you deduct your vehicle expenses for the year, meaning you must retain all receipts and relevant documents relating to vehicle charges.
In order to qualify for either option, however, you must adhere to the strict requirements of the Internal Revenue System (IRS). Find out what these requirements are, what else you need to look for, and download our free mileage log template as an Excel or PDF file.