 the reimbursement. All right, so then we have the parking fees and tolls. In addition to using the standard mileage rate, you can deduct any business related parking fees and tolls. So when we break out our bookkeeping and QuickBooks then to try to figure out our taxes, we might wanna break out our items between parking fees and tolls because in their own account, because those we might still be able to get even over and above the mileage method we're taking. So you can see how this kind of influences possibly our bookkeeping here. So parking fees, you pay to park your car at your place of work or non-deductible commuting expenses. Okay, actual expenses. If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. So what are you gonna do then? You're gonna ask your accountant to figure out which is better. So if you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Now, oftentimes the actual method, write-off method will give you the bigger deduction, but that may only happen in year one and you're gonna be using the car for five to 10 years. So you really kinda wanna think about what the best deduction would be over the lifespan of the car, which gets a little bit complicated. But once you figure it out, if you're using the actual method or the mileage method that could influence how you're gonna track your miles within QuickBooks. So actual car expenses include the cost of the following. So in other words, these are the costs that you would have related to your vehicle if you were using the actual method as opposed to the mileage method. This is the stuff that you don't have to track as rigorously if using the mileage method instead of the actual method. The big one is depreciation. Depreciation is a pain to calculate. It takes a whole nother kind of form to kind of do, and it's not something that normal, like small businesses often do in their sole proprietor bookkeeping. It's gotta be done by the tax software. It's not too difficult for tax software to do, but that's the one that's kind of a, it's not a cash-based thing, right? You're not tracking it in your normal bookkeeping. It's an accrual thing. So garage, rent, gas, insurance, these are stuff that normally, of course, we would be tracking in our bookkeeping system lease payments, licenses, oil, parking fees, registration, repairs, tires, tolls. These are all things that, except for the depreciation that we would typically see going through our checking account if using bank feeds and QuickBooks and recording the expense to auto expense of some kind. We might have separate subcategories breaking all this stuff out. But, and the insurance is also particularly kind of tricky because we might group that with other insurance like liability insurance, but we probably wanna group it more with the auto expenses because it may or may not be deductible depending on the method that we're gonna use. And we might wanna break out the stuff that could be deductible, even if we're using the mileage rate, like tolls I believe that might still be deductible even if we are using the mileage rate. So if you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. This also becomes tricky. So you can divide your expenses based on the miles driven for each purpose. This is what QuickBooks is basically helping us to do. We're driving around and we can basically allocate the miles to business or personal. Example, you are the sole proprietor of a flower shop. You drove your van 20,000 miles during the year. 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use, including commuting miles. You can claim only 80%, 16,000 over 20,000 of the cost of operating your van as a business expense. So if you're using actual write-off method like depreciation and so on, you would have to then limit it to 80%, right? But if you're using the mileage method, then you would use the business miles. So more information for more information about the rules for claiming car and truck expenses. You can see publication 463. This is on the IRS website. You can search for it, irs.gov, irs.gov.