(pages 8 to 33). In addition, enter all other
expenses such as repairs and oil changes in the
Vehicle Expenses Log (pages 36 to 43). Be sure to
save the receipts for all these expenses. Enter the
totals from the Mileage Log and the Vehicle
Expenses Log onto the calculation form for the
Actual Vehicle Expenses Method (page 44). Com-
plete the Annual Vehicle Expenses/Depreciation
form (page 46) and then transfer these figures to
the calculation form for the Actual Vehicle
Expenses Method. Determine the total business
vehicle expense by following the directions.
NOTE: Vehicle depreciation is not included
in this calculation because it is too complex
to describe adequately here. Consult the
annual Family Child Care Tax Workbook
and Organizerfor details.
After calculating vehicle expenses using each
method, you can decide which one to use on
your tax return. If you use the Actual Vehicle
Expenses Method in the first year you use the
vehicle in your business, you generally must
continue using this method for as long as you
use that vehicle in business. If you use the
Standard Mileage Rate Method in the first year,
you can switch to the other method in later
years. If your business operates two or more vehi-
cles during the same time period, you must use
the Actual Vehicle Expenses Method.
See the following sample pages for guidance in using the
Mileage Log and the Vehicle Expenses Log.