Hello,
It seems that when the standard mileage rate is used, the depreciation shown in the "Depreciation and Amortization Report" is zero, since the depreciation is embedded in the deduction.
What happens when a car (used 10-30% for business, depending on the year) is normally reported using the standard mileage but one year it is better to use the actual expenses, meaning, what cost basis is used? Is it the Blue Book value?
Other questions when using the actual expense method:
- Since the actual expenses method prorates by usage (business vs total), does that mean that the expenses can be for personal use (like parking)?
- Where do parking and smog go in Schedule A?
Thank you!
