If I change my business expense deduction for my car to actual expenses, the depreciation is much greater than in previous years. Will this trigger a red flag?

[helensohne-gmail]

In the past I used mileage but I never used the depreciation method. Using this method for 2022 the deduction is a few thousand dollars and creates a large business loss. Should I do it anyway?

[JamesG1]

If the vehicle qualifies, it certainly does not hurt to check both methods to see which method provides a better result.  Be advised that increasing a business loss or switching from business income to business loss may affect other items reported on your self-employment activity.

If you used the standard mileage rate method in the first tax year that you reported your vehicle for business use, in later years you may choose to switch back and forth between the methods each year. 

If you use the actual expense method in the first year you are required to continue to use this method for that specific vehicle for all future years.

See Actual expenses vs standard mileage method here.

@helensohne-gmail