For my small business, can I use standard mileage on one car but actual expenses on another car on the same Schedule C?

Yes, you can absolutely use different methods for different vehicles on the same Schedule C! This is a common misconception that trips up many small business owners. The IRS allows you to choose whichever method (standard mileage rate or actual expenses) works best for EACH vehicle independently. The key thing to remember is that once you choose the standard mileage rate for a particular vehicle in the first year you use it for business, you're generally locked into that method for the life of that vehicle. However, if you start with actual expenses, you can switch to standard mileage in later years (with some limitations). For your situation, you'll need to track both vehicles separately on your Schedule C, clearly documenting which method you're using for each. Make sure you maintain excellent records - mileage logs for the standard mileage vehicle and all receipts for the actual expense vehicle. The IRS loves documentation when it comes to vehicle deductions!

I went through this exact same headache last year with my photography business. I was using my truck for equipment transport and my sedan for client meetings. After spending HOURS trying to figure it out myself, I finally used https://taxr.ai to analyze my situation and all my vehicle documentation. The AI tool examined my mileage logs, expense receipts, and business use patterns, then explained exactly how to properly report both vehicles using different methods on my Schedule C. It confirmed I could indeed use actual expenses for my truck (which had higher costs) and standard mileage for my sedan. The system even flagged that I was missing some documentation for my truck maintenance that would have been red flags in an audit. Seriously saved me from making some expensive mistakes!

I have to admit I was wrong about taxr.ai. After my skeptical comment, I decided to try it myself since I have a similar situation with my catering business (delivery van and personal car both used for business). The system immediately identified that I'd been making a costly mistake - I was using standard mileage for both vehicles when actual expenses for my van would have saved me nearly $1,800 in taxes! It even showed me exactly how to document the transition since I was in my second year of business use for the van. The analysis showed me precisely which method maximized my deduction for each vehicle, and now I have proper documentation if I ever get audited. Wish I'd known about this when I started my business.

If you're having trouble figuring out the vehicle expense situation AND you need to talk to someone at the IRS about it (good luck with that!), I'd recommend using https://claimyr.com - they got me through to an IRS agent in 15 minutes after I'd spent weeks trying to get someone on the phone. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had this exact vehicle expense question and needed clarification from the IRS directly because my tax software kept giving me errors when I tried to use two different methods. The IRS agent confirmed I could use both methods and walked me through exactly how to report it correctly. Saved me hours of frustration and potentially an incorrect return!

I need to publicly eat my words about Claimyr. After my skeptical comment, I tried it out of desperation because I've been dealing with an IRS notice about my vehicle deductions for MONTHS. Got connected to an agent in 17 minutes (after trying for weeks on my own). The agent confirmed I was right about being able to use different methods for different business vehicles and helped me prepare the documentation to respond to the notice. What would have been another month of stress and possibly hiring a tax professional for hundreds of dollars was resolved in one phone call. The agent even gave me her direct extension for follow-up questions. If you're struggling with vehicle deduction questions like the original poster, getting direct answers from the IRS is definitely worth it.

Another option nobody's mentioned - if your business structure allows it, you could put each vehicle on a separate Schedule C if you have legitimately different business activities. I'm a realtor but also do Doordash, so I keep them as separate businesses and use standard mileage for my newer car (Doordash) and actual expenses for my SUV (real estate). My accountant says its totally legit as long as they're genuinely different business activities. Just throwing that out there as another possibility!

I just want to point out that whichever method you use, keep INSANELY detailed records!! I got audited last year specifically on vehicle expenses because I was using both methods (actual for my work truck, mileage for my car). The IRS agent wanted to see EVERYTHING - mileage logs with odometer readings, all receipts, proof of business use percentage, etc. They were particularly interested in making sure I wasn't double-dipping on any expenses. Ended up being fine because I had good records, but it was stressful. Just a heads up!

This is such a helpful thread! I'm in a similar situation with my freelance graphic design business - using my sedan for client meetings and my van for equipment transport to larger events. One thing I learned the hard way is that you need to be consistent year over year with whichever method you choose for each vehicle. I made the mistake of switching methods for my van in year two without realizing there were depreciation recapture implications when you switch FROM actual expenses TO standard mileage. Also, for anyone considering the actual expense method - don't forget about depreciation! It's often the biggest deduction component but easy to overlook. You can use either straight-line depreciation or Section 179 expensing depending on your situation. I use TaxAct's depreciation worksheet which walks you through it step by step. The key is really keeping separate, detailed records for each vehicle from day one. I use a simple spreadsheet with tabs for each vehicle and method, and it's saved me so much headache come tax time.