Car Depreciation vs. mileage

Dec 28, 2014 1 Replies

Hi,



I started in October of 2013 when I bought a new car ,using depreciation for the first time for my small business vehicle. Now with this year ending, I found it better to use the mileage to avoid being forced into constantly buying a new car. Is there a way to start 2015 with the mileage method and stop using the depreciation method for vehicle expenses.


No, you can't do that. You are not allowed to switch from actual expenses ("the depreciation method") to the mileage allowance. Once you have used actual expenses for a particular car, you have to continue using that method for that car in subsequent years.

Bob Sandler

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