Standard milage vs actual expense

[nnikitenko1]

Can I switch to actual expense after using standard milage before? Does this get flagged by the IRS?

[MayaD]

Yes, you can switch from standard mileage to actual expense deduction and that does not get flagged. However, you can not switch from actual to standard.

[nnikitenko1]

Ok so next year for example, I will not be able to go back to standard, if necessary? 

Thank you for your help!

[ErnieS0]

You will not be able to switch to standard mileage if you claim actual expenses as Tax Expert @MayaD said.

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.

Can I switch between the standard mileage rate and actual expense method?

[nnikitenko1]

Will I need to recalculate anything from prior years to switch to actual?

Thank you!

[DianeW777]

No. TurboTax will do the calculations based on how you answer the questions.

To clarify one thing about what you are allowed to do with your vehicle expenses and choices:

1. If you use the actual expenses the first year you place a vehicle in service for business you can never use the standard mileage rate for that vehicle.
2. If you use the standard mileage rate the first year a vehicle is placed in service you can alternate each year to use the standard mileage rate or actual expenses, whichever is best.
   • Can I switch between the standard mileage rate and actual expense method?

Both of our amazing Tax Experts @MayaD and @ErnieS0 pointed this out however I wanted to be sure you clearly understood your options.

[nnikitenko1]

Great! This is very helpful.  Thank you!

[eternity1]

switching to actual, and TT says must use straightline but the SW takes me into MACR??

[AmeliesUncle]

---

@nnikitenko1 wrote:

Ok so next year for example, I will not be able to go back to standard, if necessary? 

---

I realize this is two year old, but you ARE able to switch back to using the Standard Mileage Rate (assuming you used the Standard Mileage Rate in the first year).

Unfortunately, TurboTax is not set up correct to switch from the Standard Mileage Rate to the Actual Expenses.