Hello Chuckv18!
Thank you for your follow-up questions. You are not required to use the same deduction method in the second year as you did in the first year. If you choose to use the standard mileage method, you must use this method in the first year the car is available for use in your business. Then, in the second or third year and going forward, you may choose whichever method gives you a higher deduction which will in turn give you a greater tax benefit. After the first year, it is best for you to calculate the deduction using both methods in order to see which method is more beneficial for you.
Please refer to the IRS article below for reference regarding using the standard mileage method or the actual expenses method.
https://www.irs.gov/taxtopics/tc510
When you purchase a new car next year, you will go through the same process again as you did with the first car - please refer to the explanation above.
This deduction method is based on the usage of the car for the business.
Please let me know if this answers your questions, or if I can be of further assistance.
Thank you!
Shirleyh88
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