So, I used the actual cost deduction on vehicle last year for my business. This year, I am starting a new business which will have me on the road alot and I would like to use the standard mileage deduction for this business. Is there any way I can switch this vehicle's deduction method since it is for a new business? I would be willing to no longer claim it for my first business as I'm phasing that out.
Yes, for the first business, report that the vehicle was converted to personal use.
Enter the vehicle for use for the second business and enter the "basis/cost/value" adjusted for the prior depreciation taken when used for Business #1.
So if the cost was 50,000 and you took 20,000 depreciation, enter as cost 30,000.
If you take the Standard Mileage rate while using for business #2, the adjusted basis will not affect the mileage rate value, however, if the vehicle is later sold, that prior deprecation will need to be addressed as well as the depreciation equivalent in the standard mileage rate.
For the year it's sold, again report as converted to personal use first, then use the original cost and all depreciation for the adjusted basis and enter as a sale of a business asset.