@fanfare wrote:
Can I take straight line depreciation or other method over 5 years on a car and ignore the two methods you outlined?
If not 5, what is the correct asset life for an auto?
@Opus 17
You can't ignore the two methods, but if you use the actual expense method, you may have different options for calculating the depreciation, including Section 179 and something other than straight line.
This also affects your future deduction choices.
If, in the first year you place the car in service, you use the actual expense method (with any method to calculate depreciation) you must use the actual expense method in future years (sticking with your chosen method of depreciation) and can never switch to the standard mileage method.
If you use the standard mileage method in the first year, you can switch back and forth from the standard rate to the actual expense method in future years. But if in one of those years, you calculate depreciation by any method other than straight line, you are locked into the actual expense method for future years. (Calculating the deprecation when you switch back and forth from the standard rate to the actual expense method is challenging and tricky, as well.)
