Standard Mileage Rate vs Actual Expenses

[MelO4]

Why do they have this rule?

If you used the standard mileage rate for the first year your vehicle was in service, then, after that, you can calculate both methods and use whichever gives you a larger deduction. If you use the actual expense method the first year, you must use it for the life of the vehicle.

This is the first year of use for the vehicle.  How do I know what will be most beneficial in the future?

Is it better to take the Standard Mileage Rate deduction in the first year, though not as good a deduction than actual expenses, just to have flexibility in the future?

Thanks!

[AliciaP1]

It depends on how much income and other expenses you are reporting for 2021.  Usually, it's sufficient to use the mileage rate in the first year, because it provides a deduction but does not create an excessive loss that has to be carried forward.

[MelO4]

Thank you!  Very interesting!