In December 2016 I purchased a new truck for work and claimed the special depreciation (50%) deduction. The following year I traded the truck in for a used truck (bigger engine) and filed a “like kind trade”. My question is do I use standard mileage rate on this vehicle or actual expenses? The vehicle is used 100% for business.
It really depends. I recommend that you do the calculation for both and then take the one that gives you the larger deduction. As a matter of fact, when you tax software like TurboTax that’s exactly what the program does. I’ve included the link to an article on when to use the standard mileage rate vs actual car expenses below:
All the Best-
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