Mileage

Forum|Forum|3 years ago
May 1, 2023
1 reply
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Could someone please link me to an article by Turbotax or the IRS, that states that a sole proprietor may switch several times between miles and actual expenses for their business car, for several years. I went to 15 websites and could not find this information. Thank you everyone.

TurboTax Self Employed Online

TomD8

Alumni - Champ

The best source is the IRS itself. Scroll down to Car Expenses in this IRS reference, and you'll find all the rules:

https://www.irs.gov/publications/p463

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Critter-3

Level 15

Base rule :

If you start with the actual expense option in the year you place the vehicle in service you are STUCK with the actual expenses option until you take the vehicle out of service.

If you start with the standard mileage rate the first year of service you can "flip flop" at will in future tax years.