For 2025 tax, form 4562 did not carry over an automobile I put in service in 2024 and use for business part of the time. The business assets prompts don't even list automobile.

[MaryK4]

If your 2024 automobile did not carry over to your 2025 tax return, you must manually re-enter the vehicle in the business assets section to calculate depreciation. Select "Add a Vehicle" under the vehicle expense section (not just general assets), ensure you use "Actual Expenses" (not standard mileage) to trigger depreciation, and enter 2025 mileage. 

[taxingjane]

Thank you for your input.  

Are you saying that I can't use standard mileage deduction and also take depreciation on my Honda 2014 which I use ~28% for business?  I was able to do both last year when I put the car in service.

[taxingjane]

I just redid the taxes and was able to add .tax2024 suffix to last years so it would import the information regarding depreciation for Honda 2014 that I put in service in 2024.  

•  Since it shows depreciation, does that mean that I entered the actual expenses and not the standard mileage for last year? (I should know this but I have struggled all day to figure it out looking at the taxes.)  

•  Is it true whatever method (actual expenses vs standard mileage) that I used when I put the Honda 2014 into service last year (2024), I need to keep using the same method?

Thank you

[CatinaT1]

Correct. You can not take both actual expenses and the standard mileage deduction. A portion of the standard mileage rate is for depreciation. 

The standard mileage rate includes: average costs for fuel, maintenance, insurance, and depreciation and are built into the rate.

Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction

[taxingjane]

Thank you, Cantina!

I'm still trying to figure out if I took actual expenses or standard mileage last year, my first year to put a 2014 Honda into service. 

•  Since 2024 shows depreciation for that car, does that mean that I entered the actual expenses and not the standard mileage for last year? (I should know this but I have struggled to figure it out looking at the taxes.)  

[DianeW777 · Accepted solution]

Yes, that would be an indicator. Keep in mind if the standard mileage rate (SMR) was not used the first year this automobile was placed in service then you can never use it on this vehicle. On the other hand if you did use it the first year, then each year you have the choice of actual expenses or SMR. 

In the case of using the SMR the first year, when switching from the SMR to the actual expense method, you must use the straight-line method of depreciation over the estimated remaining useful life of the car. 

• IRS Publication 463 (specifically for automobiles)

@taxingjane 

[taxingjane]

Thank you!  

I am appalled at how complicated this feature is.