Hi this is in reply to the the above question regarding the standard deduction versus actual expenses method. The solution says, "You can only use actual expenses if you used this method THE VERY FIRST YEAR you placed the car into service."
OK, I have a WHAT IF:
So I placed my car into service in 2019 for my sole proprietorship. I'm sure I've taken the standard deduction....not sure how to double check that tho. But at the time that I got the car, it was A LEASE. So this year, we bought out the lease only because car prices had jumped 100% a long with everything else. Never the less, we paid a hefty tax and license fee, and our loan interest is higher because there was no special APR rate on lease buy out. In fact, the fees were so high that the purchase was back up nearly to the original lease amount, but this time financed as a purchase. I want to be able to claim all of that since I did it in January I financed it and then I had to reregister the car again because the expiration was up in June. I also paid a ticket, went to traffic school, and renewed a driver's license. 2023 was a rough one, and inflation in CA tripled our overall cost of living. All tips anyone has are greatly welcomed!
