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Can I deduct my auto insurance expenses on Schedule C?
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Yes, you can deduct auto insurance on Schedule C if you use your vehicle for business purposes. The portion of the auto insurance that covers business use of the vehicle can be claimed as a business expense on Schedule C. It's important to keep detailed records of your business mileage and the total mileage driven to accurately calculate the percentage of business use. Additionally, if you use the standard mileage rate for deducting vehicle expenses, the auto insurance premium is included in the standard mileage rate, so you cannot separately deduct the insurance premium. However, if you choose to deduct actual expenses, you can include the full amount of the auto insurance premium as part of the vehicle expenses on Schedule C. It's recommended to consult with a tax professional or refer to IRS guidelines for specific details related to deducting auto insurance on Schedule C.
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