If you use a vehicle for certain driving purposes, you can deduct your costs based on your actual expenses or rely on an IRS-set mileage rate. The IRS has announced the standard mileage rates that can be used for certain types of deductible-driving (Notice 2021-02). These rates apply for the use of a car, van, pickup, or panel truck:
If you use the standard mileage rate to figure your deduction for business use of a vehicle you own, you must reduce the basis of the vehicle by a cents-per-mile rate. For 2021, the rate is 26 cents per mile (down one cent from the 2020 rate).
Rule for determining MACRS depreciation in the year property is placed in service. Either a half-year convention or mid-quarter convention applies.