I have a new car that I purchased in October 0f 2019. I usually deduct my mileage for business travel. This year Turbo Tax suggests that I take the depreciation of the new vehicle for a high deduction. If I take the depreciation for 2020, can I change back to mileage deduction for the next tax year(2021)?
Yes, you can choose to switch back and forth between the standard mileage rate and the actual expenses method from year to year without penalty. Each year, you’ll want to calculate your expenses both ways and then choose the method that yields the larger deduction and greater tax benefit to you.
Some of the costs you can include in your Actual Expenses are: