Step 5: Standard mileage rate

Line 22: You may be able to use the standard mileage rate instead of actual expenses to calculate the deductible costs of operating a passenger vehicle, including a van, sport utility vehicle (SUV), pickup, or panel truck.

If you want to use the standard mileage rate for a vehicle you own, you must do so in the first year you place your vehicle in service. In later years, you can deduct actual expenses instead, but you must use straight line depreciation.

If you lease your vehicle, you can use the standard mileage rate, but only if you use the rate for the entire lease period.

If you use more than two vehicles, complete a second Employee business expenses worksheet , Part 2, providing the information requested in lines 11 through 22. Be sure to include the amount from line 22 of both worksheets in the total on line 1.

Note: You can deduct state and local personal property taxes, if any, on Form IT-196, line 7.

If you are claiming the standard mileage rate for mileage driven in more than one business activity, you must calculate the deduction for each business on a separate worksheet. Be sure to include the amount from line 22 of both worksheets in the total on line 1.