I'm a realtor for vehicle expense deduction if last year i used the standard mileage deduction is there any risk or problem switching to actual expenses?

[Quebmana]

I'm a realtor for vehicle expense deduction if last year i used the standard mileage deduction is there any risk or problem switching to actual expenses? Maintenance was much higher this year on the vehicle.

[Bsch4477]

To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

[AnnetteB6]

As long as you used the standard mileage rate during the first year that you placed the vehicle in service, then you can switch between the two expense methods in subsequent years.  If you used the actual expense method the first year you placed it in service, then you must stick with actual expenses as long as you use the vehicle for business purposes.

To learn more, take a look at the following TurboTax help article:

Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction

[Quebmana]

So then if we started standard mileage deduction, then go the Actual cost this year, then next year if we do not have a lot of repairs we can switch back to the standard mileage deduction that next year going forward..?

[Bsch4477]

Once you have used actual expenses you can’t go back to standard mileage. 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/switch-standard-mi...

[AmyC]

There are rules attached to being able to switch back. Provided you follow the requirements, you are able to switch back and forth.  A leased car is not eligible to switch. In Topic 510 we see these rules:

To use the standard mileage rate, you must own or lease the car and:

• You must not operate five or more cars at the same time, as in a fleet operation,
• You must not have claimed a depreciation deduction for the car using any method other than straight-line,
• You must not have claimed a Section 179 deduction on the car,
• You must not have claimed the special depreciation allowance on the car, and
• You must not have claimed actual expenses after 1997 for a car you lease.

To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

For a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate.

[Quebmana]

I don't think you are correct based on this turbo tax document link below...Please review and reply

turbotax.intuit.com/tax-tips/self-employment-taxes/standard-mileage-vs-actual-expenses-getting-the-biggest-tax-deduction/L0wIEUYhh

1) 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.

2) If you want to use the standard mileage rate method in any tax year, you must do so in the first tax year you use your car for business. In later years you can choose to switch back and forth between the methods from year to year. 

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[Quebmana]

I am a Realtor, i own my own car, and i had a lot of repair expenses last year as well as the increase of gas prices

[Quebmana]

This link or document was good, thank you

[AmyC]

The IRS is always the best place to get your information for final choices that are big like this. You are smart to check around. Sometimes rules change so it is wise to double check. You won't claim any crazy depreciation, just normal, so you are fine. Switch away!

IRS Topic 510 shows under the rules:

To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.

[Bsch4477]

Once you go to actual expenses you can’t go back to standard mileage. See here. 

https://www.irs.gov/taxtopics/tc510

. However, if you used the standard mileage rate in the year you place the car in service and change to the actual expense method in a later year and before your car is fully depreciated, you must use straight-line depreciation over the estimated remaining useful life of the car.