barbgreenx
Level 3
07-10-2020
05:41 PM
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When a Vehicle is fully depreciated and the client still uses it for business
can the standard mileage now be used. Thanking you in advance.
Barbara Green
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Level 15
07-10-2020
05:54 PM
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Once youve used actual you dont get to switch to mileage once your depreciation is used up, youre still stuck with actual expenses.
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TaxGuyBill
Level 15
07-10-2020
06:09 PM
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Actually, you CAN go back to the Standard Mileage Rate ... IF it was used in the first year.
Level 15
07-10-2020
06:48 PM
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so you can use mileage one year, then actual and depreciate until the dep runs out, then go back to mileage? doesnt mileage include depreciation? but the depreciation would be all used up.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15
07-10-2020
07:05 PM
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Yep. That is one of the great things about the Standard Mileage Rate ... you can keep using depreciation (built in) even when the Basis is zero. It is especially nice for high-mileage businesses.
Level 15
07-10-2020
07:12 PM
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so if you sell it do you have to recapture the depreciation taken as actual expense as well as the dep built into the mileage rate?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15
07-10-2020
10:05 PM
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Yes, any gain due to the depreciation would be recaptured.
But again, you can keep claiming the Standard Mileage Rate even when the Basis of the vehicle is zero. So that is effectively 'free' depreciation.