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dundon929
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Why am I having to depreciate my vehicle after using mileage deduction while owning the vehicle

 
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Why am I having to depreciate my vehicle after using mileage deduction while owning the vehicle

Try deleting the vehicle entirely.  Then read these instructions all the way through, before re-entering.

You have two options when deducting expenses for your car. 

One is the standard mileage deduction, which will give you .54 per mile, plus any tolls or parking fees. 

The other is the actual expenses, which lets you deduct the cost of gas, insurance, repairs, and other things.  Keep in mind that when you use the actual expense method, you must elect to use that method for the entire time you use the car for the same business.  You can switch to the standard mileage rate for any year after that, but you can't switch back to the actual expense method. 

Standard Mileage Rate

1.       Click Start or Update by Business Vehicle Expenses or Job-related Expenses, depending on where you're deducting it.  

2.       On the Tell Us About Your Business Vehicle, enter the make and model of your vehicle.  

3.       On the Do You Own Your Business Vehicle? enter the ownership.  

4.       On the When Did You Acquire Your Business Vehicle? enter the date that you first acquired the vehicle.  

5.       On the When Did You Start Using Your Business Vehicle for Business? enter when you started using it.  

6.       On the Are You Still Using Your Business Vehicle for Business? enter Yes or No 

7.       Answer the Is Your Business Vehicle an Electric Vehicle?  

8.       Answer the Did You Purchase Your Business Vehicle New?  

9.       On the Did You Trade in Another Vehicle to Purchase this Business Vehicle?, if you click Yes, it has a box where you can put the Cash, or loan amount (or both), paid with trade-in.  

10.   The next screen, Personal Use of Your Business Vehicle, asks about your personal use.  

11.   On the Mileage Records for Your Business Vehicle, it asks if you have written documentation for your vehicle.  

12.   On the How Do You Want to Enter Your Mileage for Your Business Vehicle?, choose either method.  

13.   On the How Do You Want to Enter Your Mileage for Your Business Vehicle?, the middle box, Miles driven for business, is the number used in the calculation.  

14.   On the Was Your Business Vehicle Used for Hire?, enter if it was used as a cab or Uber.    

15.   On the How Many Vehicles Did You Use for Your Business in 2016?, enter the TOTAL number for the year.  

16.   On the Did You Use the Standard Mileage Rate? screen, it asks that because you can't take standard mileage IF you've taken actual expenses on the SAME vehicle in previous years.  

17.   The next screen says your total standard mileage rate.


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1 Reply

Why am I having to depreciate my vehicle after using mileage deduction while owning the vehicle

Try deleting the vehicle entirely.  Then read these instructions all the way through, before re-entering.

You have two options when deducting expenses for your car. 

One is the standard mileage deduction, which will give you .54 per mile, plus any tolls or parking fees. 

The other is the actual expenses, which lets you deduct the cost of gas, insurance, repairs, and other things.  Keep in mind that when you use the actual expense method, you must elect to use that method for the entire time you use the car for the same business.  You can switch to the standard mileage rate for any year after that, but you can't switch back to the actual expense method. 

Standard Mileage Rate

1.       Click Start or Update by Business Vehicle Expenses or Job-related Expenses, depending on where you're deducting it.  

2.       On the Tell Us About Your Business Vehicle, enter the make and model of your vehicle.  

3.       On the Do You Own Your Business Vehicle? enter the ownership.  

4.       On the When Did You Acquire Your Business Vehicle? enter the date that you first acquired the vehicle.  

5.       On the When Did You Start Using Your Business Vehicle for Business? enter when you started using it.  

6.       On the Are You Still Using Your Business Vehicle for Business? enter Yes or No 

7.       Answer the Is Your Business Vehicle an Electric Vehicle?  

8.       Answer the Did You Purchase Your Business Vehicle New?  

9.       On the Did You Trade in Another Vehicle to Purchase this Business Vehicle?, if you click Yes, it has a box where you can put the Cash, or loan amount (or both), paid with trade-in.  

10.   The next screen, Personal Use of Your Business Vehicle, asks about your personal use.  

11.   On the Mileage Records for Your Business Vehicle, it asks if you have written documentation for your vehicle.  

12.   On the How Do You Want to Enter Your Mileage for Your Business Vehicle?, choose either method.  

13.   On the How Do You Want to Enter Your Mileage for Your Business Vehicle?, the middle box, Miles driven for business, is the number used in the calculation.  

14.   On the Was Your Business Vehicle Used for Hire?, enter if it was used as a cab or Uber.    

15.   On the How Many Vehicles Did You Use for Your Business in 2016?, enter the TOTAL number for the year.  

16.   On the Did You Use the Standard Mileage Rate? screen, it asks that because you can't take standard mileage IF you've taken actual expenses on the SAME vehicle in previous years.  

17.   The next screen says your total standard mileage rate.


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