Standard Mileage Rate - new vehicle

[Anonymous]

This is the first year I have filed my vehicle. It's asking "Did you use the standard mileage rate in the first year that you deducted a business expense for your vehicle, but I've never filed with it before. Should I say "yes" or "no?".

[KrisD · Accepted solution]

Answer "NO"

because that is the correct answer, you did not use the "standard mileage rate" last year for this vehicle.

The software is asking because you have options on how to expense the cost of the vehicle, and if this is the first year that you are placing this vehicle in service for your business, you will have options on how to depreciate it, which could save you money.

The software will walk you through and give you those options.

CLICK HERE for Business Use of Vehicles

CLICK HERE for Depreciation of Business Assets Information

[asdfg1234]

Ditto. I believe Turbotax has worded the "Did you use the standard mileage rate?" question very confusingly here. Especially, because Turbotax has added following explanation:

"We ask because if you deducted your actual expenses the first year, you cannot switch to the standard mileage deduction this year".

So if the correct answer for first year use is "No" then it is unclear how Turbotax could distinguish between these two cases:
1. car is first year for business use where tax filer STILL has option to chose between standard mileage rate and actual expenses; AND

2. car is second year for business use where first year actual expense was used so can't switch to standard mileage rate.

I think turbotax should have 3 possible answers here.