can i claim mileage deduction on one car and claim actual expenses on the second car.
When i claimed mileage deduction on the 1st car, turbo tax is not giving me option to claim actual expensed including depreciation on the 2nd car
Is this the first tax year you are claiming mileage deduction on each vehicle?
Businesses that want to use the standard mileage rate for a car they own must choose to use the standard mileage rate in the first year they use the vehicle. Then, in later years, they can choose to use either the standard mileage rate or actual expenses. Businesses that choose actual expense method must continue to use the actual expense method. You will want to calculate your vehicle expenses each way and choose the method that yields the largest deduction.
If you use your vehicle for more than one business, and chose to use the standard mileage method in the first business you entered the vehicle information on, you must use the standard mileage method for the second business you are deducting an expense for.
Hello @vinnie1119
Thanks for reaching out with this questions. We want to ensure you get the best information possible. Yes, you can use the Standard Mileage Rate on one vehicle and Actual Expenses with a different vehicle! As long as you own the vehicle, are using it for business, you can choose between the two in your first year using the vehicles for business. There are some things to keep in mind that will impact your ability to switch after the first year: If you use the mileage rate in the first year, you can switch back and forth from year to year between mileage and actual expense, however if you choose actual expenses in the first year you have to stick with that method as long as you use the vehicle for business - so that may be the issue. Double check how you filed that first year and check all you entries! Hope that helped and it was a pleasure serving you today!