Has client made a choice on auto?

[thomtax]

TP (TurboTax user) filed a tax return by paper. On the return he had claimed depreciation for vehicle to use on form 2106. He did not have enough deductions for the itemized amounts to exceed the standard deduction. After thinking about it, he decided that he did not want to start with the actual expenses, but wanted to use the standard mileage.

Two questions:
1. Even though he mailed form 4562 to the IRS, since he took standard deduction, will this be considered as having chosen to take actual expenses. The depreciation was not carried to any other forms. Or will it just be ignored when the IRS receives it?
2. Should an amended return be filed so that we can be sure that the actual expense usage is not invoked?

Thanks for your opinions.

LT

[jerome]

If the standard deduction was taken, nothing on the Schedule A or supporting forms has any meaning. Go ahead and claim standard mileage method.

[jainen]

allowed or allowable

>>nothing on the Schedule A or supporting forms has any meaning<<

It's not the cleanest way to elect out of MACRS, but it will do. The real problem will be if he decides to switch back to actual expenses. He would have to calculate the deemed depreciation of the standard mileage allowance he never deducted, an interesting example of "allowed or allowable."

[thomtax]

Jainen

Actually, my question is has a choice for actual expenses been made, since the standard deductions was used. If the 4562 had not been mailed with the return, I would not worry about it.

Also, you said that the amended was not the cleanest way to do it, what would be the clean way?

Thanks in advance for your advice.

Lowell Thomas

[jainen]

the clean way

>>what would be the clean way?<<

Sell the car.