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Vehicle depreciation on 2106

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    Vehicle depreciation on 2106

    Regarding the form 2106...

    I thought that when you began depreciation on a vehicle (with actual expenses) you had to stay with it and not hop back and forth with taking the mileage deduction.

    New client, last year they took depreciation and actual expenses. This year, I entered all the information including mileage (to compute the percent for actual expenses and dep'n) and TW automatically uses the higher of the two.

    Is it allowed, that we might choose the greater deduction?
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

    #2
    My impression

    Originally posted by Possi View Post
    Regarding the form 2106...

    I thought that when you began depreciation on a vehicle (with actual expenses) you had to stay with it and not hop back and forth with taking the mileage deduction.

    New client, last year they took depreciation and actual expenses. This year, I entered all the information including mileage (to compute the percent for actual expenses and dep'n) and TW automatically uses the higher of the two.

    Is it allowed, that we might choose the greater deduction?
    is that if you start the first year with mileage ,then you can switch around in future years.
    If you do actual the first year you must stick with it. Have client buy a different vehicle right now so you can do mileage 2010!

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