Following up with you tom775, one thing to keep in mind is the percent of business use. This is why it is important to choose before you start reporting between Standard Mileage and Actual Expenses. Once you start reporting you cannot switch.
Standard Mileage Rate –
1. is based on the business miles driven. The fixed amount of depreciation is built in
in the standard mileage rate.
2. business used percentage change won’t impact the users who use the standard
mileage rate.
OR
Actual Expenses –
1. Includes section 179, bonus depreciation and/or normal depreciation. Note, if the
customer says they have bonus (special) depreciation, it is strongly
recommended to move them to TTD. See further comments below on this.
2. Business used percentage change may change the depreciation basis
What this means is that it will make it much easier to do reporting and selling if you do standard mileage, but you may lose out if you end up spending quite a bit on repairs.
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