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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I am an independant contractor for Fedex Home Delivery. January

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I am an independant contractor for Fedex Home Delivery. January thru August I drove my old truck which has always used the mileage deduction. In September I bought a new truck. If I use the mileage deduction for new truck do I also get to depreciate it and if so how do I calculate the depreciation, I heard you can just take the total price of the vehicle and divide it by 5 (or however many years you want to spread it over) and deduct that amount i.e. $20,000 paid for the truck and for the next 5 years I can deduct $4,000. Thank you so much. Annelle
If you use the mileage deduction than you cannot claim the actual cost of operation and the depreciation.

In fact being in the delivery business, I would suggest that claiming mileage may be more advantageous to you as compared to writing off most of the cost in the current year and not having too much writeoff in the future.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

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