What percentage of business use is required for a vehicle to qualify for the actual expense method of deduction?

To qualify for the actual expense method of vehicle deduction, a vehicle must be used more than 50% for business purposes. This is crucial because the IRS stipulates that only vehicles used predominantly for business can take advantage of the actual expense method, which includes deducting expenses such as gas, maintenance, depreciation, lease payments, and more.

Using a vehicle strictly for personal purposes or having a business use of 50% or less would not meet the threshold necessary to utilize this method. Therefore, the requirement for business use to exceed 50% makes the choice of more than 50% the correct answer. This threshold helps ensure that tax deductions are accurately reflective of business-related expenses, which is essential for maintaining compliance with tax regulations and for correctly reporting income and deductions.