You'll need to sign in or create an account to connect with an expert.
Be sure to answer 'Yes' if you want to be able to use the standard rate method this year. If you say 'No' then you'll be forced to use the actual expense method (as required by the IRS).
If the date you got the vehicle was before 2016, then TurboTax must ask this question because the IRS doesn't let you use the standard method if the actual method was ever used on your vehicle (even if it was a different business).
I have had a private person do My taxes and I do not know if they used the standard deduction or not for the mileage of My vehicle. I started using this vehicle almost 20 years ago.
You can ask whoever prepared your tax return or if you have a copy, you can look on your Schedule C and see how your vehicle expenses have been reported in the past. It is very important that you know because if the ''Actual Expenses'' method was ever used, you must continue to use that method.
If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years you can choose to use the standard mileage rate or switch to actual expenses.
Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.
If you use the standard mileage rate, you must have records of business versus personal miles driven. If you use actual expenses, you must have records of all expenses and must allocate those between business and personal use.
Related Information:
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jan7y-
New Member
Wish2
Returning Member
Richie102
New Member
KCM95
New Member
Nkm171964
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.