When you use your vehicle in your family child care business, you can deduct a portion of the cost of operating it. Because the deductions for vehicle expenses can help significantly reduce your taxes, you want to be sure you are claiming them properly.
There are two ways to claim vehicle expenses: the Standard Mileage Method or the Actual Expenses Method.
The Actual Expenses Method
Using this method allows you to deduct the business portion of all the actual expenses of operating your vehicle. These include:
Gas, oil changes, repairs, car insurance, tires, emergency road service, ice scraper, jumper cables, tune-up, car wash/wax, windshield wiper fluid, as well as parking/tolls/ferry, car loan interest, car property tax and so on.