![]() It should be noted that under the Tax Cuts and Jobs Act of 2017, taxpayers cannot take a miscellaneous itemized deduction for unreimbursed business use of an automobile. As a result, taxpayers will probably choose the actual expense method in the first year the vehicle is placed in service in order to take advantage of the bonus depreciation deduction. In our experience, the standard business mileage rate is very close to the actual costs of operating a vehicle, ignoring the impact the of bonus depreciation deduction. Taxpayers that choose the standard mileage rate for a leased vehicle must use that method for the entire period of the lease. However, in later years, a taxpayer can use the standard mileage rate or actual expenses, whichever produces the highest deduction. If a taxpayer wants to use the business standard mileage rate, the taxpayer must opt to use it in the first year that the vehicle is placed in service. It should also be noted that for Virginia taxpayers, the standard mileage rate for charitable purpose is 18 cents per mile.įor business purposes, taxpayers have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rate. ![]() Note: The mileage rate for charitable organizations will remain at 14 cents per mile because it is set by statute.
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