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Level 1
posted Sep 18, 2019 11:54:19 AM

When switching from a sole proprietorship to an LLC, If I have been taking actual expenses for my vehicle, can I switch to mileage for my LLC?

Do I need to change ownership of the vehicle to the LLC?

0 2 461
1 Best answer
Not applicable
Sep 18, 2019 1:00:18 PM

your llc is a disregarded entity so that has nothing to do with the answer.   

you can not switch  to standard mileage method if

5 or more autos used simultaneously ( ex - fleet operations)

or

for those for which you claimed in prior years accelerated depreciation, sec 179 depreciation or additional first year depreciation (section 168(k) sometime referred to as bonus depreciation.   

2 Replies
Level 15
Sep 18, 2019 12:51:07 PM

If a single member LLC, the only difference between a sole proprietorship and a single member LLC is the spelling. Literally! The absolute only thing that will change on your tax return, is the addition of the letters "LLC" after the business name on the SCH C, and that's it. Other than that, there's nothing else to do on the tax front.

 

Not applicable
Sep 18, 2019 1:00:18 PM

your llc is a disregarded entity so that has nothing to do with the answer.   

you can not switch  to standard mileage method if

5 or more autos used simultaneously ( ex - fleet operations)

or

for those for which you claimed in prior years accelerated depreciation, sec 179 depreciation or additional first year depreciation (section 168(k) sometime referred to as bonus depreciation.