Standard mileage deduction extra?

[mpalmer48]

I'm a rideshare driver and I've been using the standard mileage deduction each year. This year, I had to replace my engine. Can I deduct this as a non ordinary mileage deduction? If so, even though I don't have a shop anymore, can I deduct my labor to install the engine based on standard labor times?

[ThomasM125]

No, you can't switch from the standard mileage allowance to the actual deduction method. The reason is the standard mileage allowance is designed to include an allowance for the normal cost of repairs. So, in theory you will re-coop the cost of your repair over time by using the mileage allowance. 

Also, you cannot deduct the cost of your own labor, as the cost of time is never deductible unless you pay someone for it. 

[AmeliesUncle]

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@ThomasM125 wrote:

No, you can't switch from the standard mileage allowance to the actual deduction method. T

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Huh?  You certainly can switch to Actual Expenses.  But you can only use ONE method - either the Standard Mileage Rate or the Actual Expenses.

But the tricky thing is that TurboTax does not calculate depreciation for the Standard Mileage Rate.  So if you were to use the Actual Expenses, in order to depreciate the vehicle you would need to MANUALLY calculate the "prior depreciation".

[ColeenD3]

If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years you can choose to use the standard mileage rate or switch to actual expenses.

If you use the standard mileage rate you must have records of business versus personal miles driven.

If you use actual expenses you must have records of all expenses and must allocate those between business and personal use.

You can't deduct for your own labor.

@

mpalmer48

[mpalmer48]

I've always used the standard deduction. My question is, an engine replacement is not part of " Normal" maintenance. Can it be deducted itself, even without the labor?

[JohnW222]

@mpalmer48

If you’re going to use the Standard Mileage deduction, you can’t deduct individual expenses for your car, such as engine replacement.  That’s simply an IRS rule.

If you use the actual expense method, you can claim this expense, including labor.

If you want to use the standard mileage rate method, you must do so in the first 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 without penalty.

Please see the TurboTax Help article “Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction” and the IRS's Publication 535, Business Expenses for more information.