If I am taking the standard mileage deduction for my business, do I have to fill out Part 4 of Schedule C or Form 4562?

[taxadviceinny]

It is an old car and I do not need to depreciate it. I am thinking I can skip both Form 4562 and Section 4 of Schedule C?

[Cindy0H · Accepted solution]

Unfortunately, the IRS does not allow that:

Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.

FYI, standard mileage actually includes depreciation.

You can delete any vehicle on the vehicle summary screen to remove your entries. When you stop using a vehicle, there is a calculation based on depreciation taken to determine if you had a gain or loss and recapture any depreciation taken. A gain is uncommon, unless you sell the vehicle. 

If you have more questions about this, ask in the comment box below.

[taxadviceinny]

Thanks for your answer! Is it correct if the standard mileage is used in the first year, then I don't need to fill out Part 4 of Schedule C? Does it also mean I don't need to fill out Form 4562 since I am not depreciating? Just want to be sure.

[Cindy0H]

Depreciating is part of the standard mileage.

[taxadviceinny]

Does that mean I have to fill out Part 4 of Schedule C?

[Mosaic]

Ok... Its not for as long as you own the vehicle for business use. After 6 years you can no longer depreciate it, its fully depreciated, with a claim for a partial year in the first and 6th years. This IS the actual expense method, allowing you to recoup purchase costs. This method applies ONLY if you put the vehicle into business use from the first year of purchase. Standard mileage applies beyond this point. Figure out which gives you the better deduction and use it. 

[Mosaic]

No, it isn't ... So if you qualify for depreciation, from the first year you bought the car only, you should figure out which gives you the better return and stick to it. If you owned the car before and put it to business use a year later (tax year) then you CANT depreciate it an must use standard mileage. You can still claim percentage of auto insurance, but not depreciation.