In the first year a vehicle is placed in service you can choose to take the standard mileage rate OR the actual expenses method which includes depreciation and the 179 deduction. It's possible that your preparer used the standard mileage rate in 2019. If so, in 2020 you could use either method, whichever benefits you the most.
- If you choose the actual expenses method you MUST use the actual expenses method every year for that vehicle until you dispose of it.
- If you choose the standard mileage rate method you can switch methods in future years.
You can only use the 179 deduction in the first year you put the item in service. If you use this deduction, you take most of the depreciation the first year and very little in future years.
For more information on 179 depreciation, please see Chapter 4 of IRS Pub. 463 - Travel, Gift, and Car Expenses and IRS issues guidance on Section 179 expenses and Section 168(g) depreciation under Tax Cuts and Jobs ...
