PatriciaV
Expert Alumni

Deductions & credits

Yes, the Actual Expenses method must include depreciation. The Standard Mileage method automatically includes a depreciation allowance as part of the mileage rate. 

 

If you choose to start with the standard mileage rate, you can switch back and forth between the methods from year to year. But if you start with actual expenses, you must stay with that method as long as you use the vehicle for business purposes.

 

@excentr 

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