Depreciating your vehicle - Paging Poodlebrain

Bump for poodle

That doesn't address the combination of self-employed use and employee (sch A) expense use.

I agree with Mr.Finkle here. We would need more details to be certain but this is my inital thought. Keep separate logs of course.

The 50% business use can be met by combining less than 50% use from multiple activities. However, most tax return software is ill-equipped to deal with this situation so you might have difficulty preparing your return and/or filing it electronically. See Publication 463, chapter 4 LINK

The standard mileage rate is calculated as the average operating expense of all motor vehicles. It tends to be higher than most peoples' actual operating costs since it includes large trucks and other vehicles that have higher operating costs than the typical personal automobile.

Claiming actual operating expenses exposes you to depreciation recapture, and it reduces your basis in the vehicle such that you may have to recognize a gain on the sale or exchange of the vehicle.

When you combine both of the above with the lower administrative burden for determining the deduction, using the standard mileage rate tends to make more sense for most taxpayers.

Thank you poodle


What is wrong with 179 for each portion then switching to the standard mileage rate? (Besides recapture)

quote:

---

usually is always

---

so I could 179 in year one (portion going to unreimbursed employee bus expenses and portion to schedule C) and just be stuck with actual the remainder of the vehicle life? Not saying it's smart but I was just curious as to a vehicle qualifying as depreciable if less than 50% used for self-employed income but combined with employee income it was used over the 50% percent.


Thanks for the info

The CPA reviews are great but nothing beats hands on knowledge and experience. Poodlebrain is by far the most knowledgeable poster as far as tax goes though.