Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-07-2014, 03:40 AM
Junior Member
 
Join Date: Dec 2014
Posts: 4
Switching Actual to Mileage and back.

For Sch C, I understand you have an option to choose either Actual Expenses, or Mileage Rate. Can you switch between these methods year after year? What are the restrictions? Thanks.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-07-2014, 11:15 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,230
For Sch C, I understand you have an option to choose either Actual Expenses, or Mileage Rate. =>>correct; there are two ways to deduct biz use auto travel expenses expenses, the standard mileage rate or the actual vehicle expenses.you can use either one of them.

1) Can you switch between these methods year after year? What are the restrictions? =====>>>>>I don’t think so; if you’ve already started using the actual cost method for your business car,then You cannot switch to standard mileage rate in later years. Although if you started by using the standard cost method, you can switch to the actual cost method.You cannot use the standard mileage rate if you have used the actual expense tax deduction and claimed the accelerated depreciation deduction in previous years. If you use the standard deduction the first year, you can switch to actual expenses. You have to be very careful because you can lose the ability to switch between standard and actual.as you can see, you need to use actual expenses once you used the actual expense calculation when your vehicle was first used for business purposes. If your vehicle has very high operating costs and low gas mileage, then taking the actual expense deduction may produce better savings for you.however, aslongas your vehicle gets great gas mileage, then taking the mileage deduction will likely be more beneficial for you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 12-07-2014, 03:14 PM
Junior Member
 
Join Date: Dec 2014
Posts: 4
Ok that makes sense! Thanks!!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Switching from salaried employee to contractor non-41 For 2013 3 05-14-2014 05:20 PM
Switching from 1099 to W2 & Estimated Taxes 1099toW2 For 2013 1 03-29-2013 04:43 AM
Can I claim mileage along with actual auto repair expenses? andri Auto Expenses 3 12-05-2011 06:36 AM
Standard Mileage Deduction / Actual Expense MrJ71 Itemized Deductions 6 02-08-2011 03:46 PM
Getting a Free Transcript of My Tax Return Information - Actual Copies $57 Each Samatg General 0 01-21-2009 05:11 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning