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Itemized Deductions Schedule-A


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Old 02-04-2009, 09:41 PM
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Vehicle Purchase - Deduction Question

I purchased a vehicle for my business in 2007 at the aution. It cost me $2,985.13 to drive it off the lot. I took the mileage dedution on my 2007 tax return and forgot about the purchase price of the car. Was I supposed to be able to deduct the purchase price.



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Old 02-04-2009, 10:34 PM
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No, you did the right thing by deducting the mileage expense method. As such you have a choice of using the mileage method or the actual method.

In your case, I am convinced that the mileage method would yield the greater deduction as the actual cost method would be much lower due to the fact that you purchased a used car! Thus, the purchase of the vehicle was not a factor on your 2007 tax return.

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