Event and Travel Planner- Vehicle Mileage and Rental Vehicle

[4Cordelia]

I started an event and travel business in 2024.  I own a car and use it 60% of the time for business related consultations, meetings, travel, etc.  I rent a van for the actual events. 

If I use standard mileage this year and decide next year to do actual expenses for the car, can I switch back and forth? 

The rental van I just deduct the rental expenses.

Thanks, 

[MinhT1]

If you want to use the standard mileage rate method in any tax year, you must do so in the first tax year you use your car for business. In later years you can choose to switch back and forth between the methods from year to year. Each year, you’ll want to calculate your expenses both ways and then choose the method that yields the larger deduction and greater tax benefit to you. If you use the actual expense method in the first year you are required to continue to use this method for that specific vehicle in future years.

Please read this TurboTax article for more information.