If you use a motorcycle for work, you may be eligible for a tax deduction, but it works differently than it does for cars. Unlike cars, vans, or SUVs, motorcycles are not eligible for the IRS Standard Mileage Rate. That means you’ll need to calculate your deduction using the actual expenses method.
It might sound complicated, but it doesn’t have to be. With the right tools and a little organization, tracking your motorcycle-related expenses can lead to major tax savings.
The IRS doesn’t allow motorcyclists to use the standard mileage rate because motorcycles generally cost less to operate than cars. The standard rate is meant to cover fuel, maintenance, insurance, and depreciation for larger vehicles, and applying it to motorcycles would give riders an unfair advantage.
There’s been discussion about introducing a separate mileage rate for motorcycles, but nothing official has been released. Until that happens, the only way to deduct your motorcycle expenses is by keeping detailed records and calculating your actual business use percentage. So even though you're not using the mileage rate, you should still track your miles and sort them by work or personal, that way you know exactly what your business use % is.
To claim the deduction, you’ll need to track:
You can also deduct depreciation if you own the motorcycle. Unlike cars, there’s no strict IRS cap on depreciation for motorcycles. That means you may be able to deduct more, and faster, using Section 179.
Example:
If you bought a $15,000 motorcycle in 2019 and used it 75% for business, you could deduct $11,250 that year using Section 179.
Because the deduction is based on actual expenses, keeping organized records is critical. You’ll need to:
Using a mileage and expense tracking app like Everlance can take the stress out of this process. Instead of spreadsheets and receipts scattered everywhere, your records are stored in one IRS-compliant place, ready for tax filing.
Whether your vehicle of choice has 2 wheels, 4 wheels, or more, Everlance will help automatically track every mile and expense for tax time