Business vehicle section 179 deduction. Can you use the standard mileage in future years after taking a 179 deduction? What happens when the vehicle is disposed of?

Forum|Forum|7 years ago
June 6, 2019
5 replies
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TurboTax Self Employed Online

Best answer by Critter

In the first year a vehicle is placed in service you can choose to take the standard mileage rate OR the actual expenses method which includes depreciation & 179 deduction.

If you choose the actual expenses method you MUST use the actual expenses method every year for that vehicle until you dispose of it.

If you choose the standard mileage rate method you can flip flop at will each year.

CritterAnswer

Level 15

In the first year a vehicle is placed in service you can choose to take the standard mileage rate OR the actual expenses method which includes depreciation & 179 deduction.

If you choose the actual expenses method you MUST use the actual expenses method every year for that vehicle until you dispose of it.

If you choose the standard mileage rate method you can flip flop at will each year.

angiewakefieldAuthor

Level 2

How would you figure what is best over the life of the vehicle? The Section 179 deduction is large in the first year, but the standard mileage rate will be greater than actual expenses in future years. What if we dispose of the vehicle, is there recapture involved?