Is Switching Between Taking Actual Expenses And Standard Mileage Permitted?
No. The auto expense deduction can be figured by comparing the standard mileage rate to the actual expenses and choosing the larger amount in the first year the vehicle is used for business. If the actual expense method is chosen in the firstyear, it must be used in all subsequent years until the vehicle is no longer usedfor business. To use the standard mileage rate for a vehiclethat is owned by the taxpayer, it must be used in the first year the vehicle was placed in service. In later years, the taxpayer can choose between either the standard mileage rate method, or elect to deduct actual expenses. The straight-line method of depreciation must be used if the actual expense method is used in any year after the standard mileage rate method has been used. For Additional Information click here.
