Do I use actual expenses or standard mileage rate with a special depreciation?

Accounting

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  Leanea 1 year, 2 months ago

  Do I use actual expenses or standard mileage rate with a special depreciation?

  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.

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  Crystalynn Shelton
  

  Moderator

  

  1 year, 2 months ago

  Hi Leanea!

  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:

  2017 Mileage Rate & When to Use Standard Rate vs. Actual Car Expenses

  All the Best-
  Crystalynn Shelton

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