In this insightful episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, president of Dr. Friday’s Tax and Financial firm, delves into the complexities of business vehicle expenses, specifically focusing on the choice between standard mileage and actual costs. Dr. Friday clarifies the limitations of using the standard mileage deduction, such as the restriction on fleets exceeding five vehicles and the ineligibility for claiming both depreciation and mileage. She emphasizes the mutual exclusivity of actual expenses and standard mileage deductions, highlighting the prohibition of claiming section 179, special depreciation, and actual expenses for leased vehicles since 1997. For those opting for mileage deductions, Dr. Friday advises against mixing it with other claims, offering guidance for those considering the actual cost method. For personalized tax advice, Dr. Friday encourages listeners to reach out for professional assistance. Tune into the Dr. Friday call-in show live every Saturday afternoon for more tax tips.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Business use of car. Standard miles, we all know, you must not operate more than five cars in your business. It’s considered a fleet and you cannot take the standard business. You cannot claim depreciation on a vehicle and miles. That’s self-defeating people. Actual and miles do not match. You cannot claim a section 179. You cannot claim a special depreciation and you cannot claim actual expenses for your vehicle if it’s leased since 1997. These are what you want to do. If you’re taking miles, you can’t do all the rest. If you’re going to take actual, we’ll cover that in a bit. If you need help, call me, Dr. Friday.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.