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We claimed a Section 179 deduction last year on a vehicle used for business, do we have to use the actual expense this year or can we use the standard expense

 
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MinhT
Expert Alumni

We claimed a Section 179 deduction last year on a vehicle used for business, do we have to use the actual expense this year or can we use the standard expense

If you have claimed a section 179 deduction on a business vehicle, you have to use the actual expenses method in subsequent years for the vehicle. There is no depreciation on the vehicle as you have claimed the 179 deduction. 

You cannot use the standard mileage method.

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1 Reply
MinhT
Expert Alumni

We claimed a Section 179 deduction last year on a vehicle used for business, do we have to use the actual expense this year or can we use the standard expense

If you have claimed a section 179 deduction on a business vehicle, you have to use the actual expenses method in subsequent years for the vehicle. There is no depreciation on the vehicle as you have claimed the 179 deduction. 

You cannot use the standard mileage method.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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