SMR after using actual but first year was SMR

[Gretel]

Does this sound right: In general, actual expenses including straight line depreciation are more advantageous then SMR. 1st year SMR is taken. Years 2 - 8 actual expenses are taken, now vehicle is fully depreciated. After year 8 SMR is taken until vehicle falls apart, actual expenses taken only if repairs are high enough.

[TaxGuyBill]

Sounds good to me.


The only thing I somewhat disagree with is the "in general, actual expenses including straight line depreciation are more advantageous then SMR". That varies from client to client and the type of vehicle used, but most of my clients benefit more from the SMR.

[Gretel]

Sounds good to me.


The only thing I somewhat disagree with is the "in general, actual expenses including straight line depreciation are more advantageous then SMR". That varies from client to client and the type of vehicle used, but most of my clients benefit more from the SMR.

Sorry, while writing I thought this is confusing. All I meant to say is in general for this particular client...thanks!

[JON]

I thought a portion of the SMR is for depreciation?? I do not think I have had a business auto kept that long??