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Form 2106
Form 2106

Form 2106Employee Business Expenses

1 — Vehicle Expense Updated for tax year 2025

Does this apply to you?

  • You are an Armed Forces reservist who drives more than 100 miles one way to reserve duty
  • You are a qualified performing artist who uses your personal vehicle to travel between jobs
  • You are a fee-basis state or local government official with unreimbursed vehicle costs
  • You have impairment-related work expenses that require personal vehicle use
  • You used your personal car, van, pickup, or panel truck for business purposes during the year

Easy to overlook

Choosing the wrong mileage method locks you in If you use the standard mileage rate in the first year you place a car in service, you can switch to actual expenses later. But if you start with actual expenses and claim depreciation using any method other than straight-line, you cannot switch to the standard mileage rate for that vehicle — ever. Many filers default to actual expenses in year one without realizing they are giving up future flexibility.1 IRS Publication 463 — Travel, Gift, and Car Expenses

Commuting miles do not count Driving from home to your regular workplace is commuting, not a business expense. Only miles driven from one work location to another, or from a home office that qualifies as your principal place of business, count as business miles. The IRS rejects mileage logs that include daily commutes.2 IRS Form 2106 Instructions — Line 1

Watch out for this

Failing to keep a written mileage log. The IRS requires contemporaneous records of each business trip — date, destination, business purpose, and miles driven. A lump-sum estimate at year-end does not count. If you get audited without a log, the entire vehicle deduction is disallowed.

Footnotes

  1. IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses. https://www.irs.gov/pub/irs-pdf/p463.pdf 2

  2. IRS Form 2106 Instructions. https://www.irs.gov/instructions/i2106

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