I've heard conflicting information about this on the web, as well as on the Turbotax forum.
In 2021, I purchased a brand new vehicle (Toyota Tundra) solely for business use. I have two other vehicles I use for personal use. I am self employed, and have an S-Corp LLC.
I'm getting conflicting info on whether I can claim both a deduction for the purchase of the vehicle, while also taking the standard mileage deduction.
I've read in some places (including here) that I can only claim the standard mileage deduction, or actual expenses (which includes depreciation). One or the other.
In other places I've read that I can indeed take the standard mileage deduction, and get some sort of deduction for the depreciation of the vehicle separately.
Supposedly, I can take the standard mileage deduction, while also deducting the vehicle as long as I don't use the Section 179 deduction and I use the straight line depreciation method.
I'm just suppose to determine it's useful life (8 years), and the residual value of the vehicle after it's useful life. So I subtract the residual value from the original car purchase price, and divide it by the number of useful years, and that's my tax deduction for the year.
Which is true?
Also, the car was purchased under my personal name, rather than the LLC, but hopefully that doesn't matter. And the car qualifies as being over 6,000 pounds, but I don't think that matters either because I'm not planning on using Section 179. The car was about $50,000 if that matters.
