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-
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.