Mileage & Depreciaton On Auto

[geekgirldany]

New client Sec 179 SUV in 2010. Then the next two years took standard mileage deduction for the same car.

I've told him that it was incorrect. He even found it himself before I told him.

So, I am thinking the Actual expenses should be taken. Am I missing any way that he could take the standard mileage deduction?

[bgiez]

My understanding is that if you start with actual expenses (depreciation, etc.,) that you must continue with actual. So it sounds as if the client is stuck with actual.

[jsamans]

Correct. The reference is Pub. 463 (2013), Actual Car Expenses, under the heading "Depreciation and section 179 deductions," and it is explicit:

"If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you cannot use the standard mileage rate on that car in any future year."

[geekgirldany]

That is what I thought but wasn't sure if there might be another way around it. I guess the only way he could would be to get another car to use for standard mileage and recapture Sec 179 on the other one.