Truck Depr.

[book502TT]

Client bought a new 2008 truck in 2/08 that he uses 84% of the time for business purposes. Business mileage was 23,000 miles for 2008. His previous accountant said that the client could only claim the actual mileage for business or take the depreciation for the truck. But, noth both mileage and depr. Pub. 463 does not mention this. Appreciate any comments. TU. Dave

[JohnH]

What basis do you have to question the previous accountant's opinion?

You can also show him page 10-5 of the Tax Book for the final word on the subject.

[Jiggers]

Mileage rate or actual expenses, but not both.

Client bought a new 2008 truck in 2/08 that he uses 84% of the time for business purposes. Business mileage was 23,000 miles for 2008. His previous accountant said that the client could only claim the actual mileage for business or take the depreciation for the truck. But, noth both mileage and depr. Pub. 463 does not mention this. Appreciate any comments. TU. Dave

If you claim maileage using the IRS standard mileage rate, that is all you can deduct.

If you depreciate the truck, you claim all other expenses (fuel, repairs, license, etc.) at the business use %.

[DaveO]

If you claim maileage using the IRS standard mileage rate, that is all you can deduct.

If you depreciate the truck, you claim all other expenses (fuel, repairs, license, etc.) at the business use %.

What about the business % of the interest on the loan?

[Jiggers]

Yep, that too!

What about the business % of the interest on the loan?

Included in the "etc." On a schedule C or F asset only.

[S T]

Schedule C or form 2106

Standard Mileage From TTB page 10-5 -

Costs included in the standard mileage rate. The standard mileage
rate can be used to replace the actual cost of depreciation,
lease payments, maintenance and repairs, gasoline, oil, insurance,
and vehicle registration fees.

Costs not included in the standard mileage rate. In addition to
deducting the standard mileage rate, the business percentage of
the following costs is deductible:
• Interest expense for a self-employed
individual, (but not for an employee,
even if the vehicle is used 100% for
business).
• Personal property taxes.
• Parking fees and tolls.

Choosing the standard mileage rate. To use the standard mileage
rate for a car that is owned by the taxpayer, it must be used in
the first year the car is available for business. Then in later years,
the taxpayer can choose between either the standard mileage
rate method or actual expenses.

Then there is more on depreciation, etc on the same page.

OP did not provide whether or not this an employee under form 2106 (no interest deduction) or a Schedule C taxpayer. If Corporation, then something different entirely.

Sandy