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Hi, (please don't shoot the messenger here, but you can only use depreciation as a part of the ACTUAL EXPENSE method) ...
Using the Actual Expenses Method
Certain vehicle-related amounts you spend can be used to determine your actual expenses. Vehicle expenses include:
The maximum depreciation deduction allowed may be limited due to the IRS passenger automobile rules.
If you use the mileage method, the depreciation and all of those other expenses are essentially aeraged to get to the allowed mileage rate
If you elect to use the standard mileage deduction, you may deduct 55.5 cents for business purposes and job searching (in a related field). If you move to a new home because of a job change, the mileage rate while moving is 23.5 cents per mile (these miles are deducted on Form 3903, Moving Expenses, if you meet the moving deduction requirements).
sorry fpr the typo "averaged," taken into consideration to get to the 55.5 cents per mle
Hang on a sec and I'll get the actual IRS documentation onit for you
Here ya go ... form: http://www.irs.gov/taxtopics/tc510.html
You can generally figure the amount of your deductible car expense using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, before choosing a method, you may want to figure your deduction both ways to see which gives you a larger deduction. For the current standard mileage rate, refer to Publication 463, Travel, Entertainment, Gift and Car Expenses, or search standard mileage rates on IRS.gov. If you use the standard mileage rate, you can add to your deduction any parking fees and tolls incurred for business purposes.
To use the standard mileage rate, you must own or lease the car and:
Hope this helps
OK how about line two You must not have claimed a depreciation deduction for the car using any method other than straight-line,
Hopefully rate my answer based on the accuracy and thoroughness, rather than any good news/bad news content ... My hope is having all the facts will help you see around some corners
Right, that's IF you use actual expenses
Again depreciation is one of the ACTUAL expenses ... compensates you for depleton (wear and tear, however you wan to put it) on the car ... Mileage rate has that and all the other stuff built into it
YOu can't do both
OK I have to research it because I think I cannot use any methods, except S/L
There IS one place where you can do al little add-in, and that's if you use the standard mileage rate, you can add to your deduction any parking fees and tolls incurred for business purposes.
Thank you I need more time for research. I remember H&R Block class teacher told us that we could use milage and S/L
Actually MACRS is required for most property
MACRS assigns each type of business asset a "class" and specifies the time period over which you can write off assets in each class. The most commonly used items are classified as shown in the chart that follows.
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