QUESTION:
I will claim an automobile deduction on my tax return and have used the standard mileage rate in previous years. However, in 2024 I incurred significant car expenses that will outweigh the standard mileage deduction. Can I switch to deducting actual costs for 2024?
ANSWER:
Yes, you’ll be able to switch to the actual expenses method if you own your car and you used the standard mileage rate in the first year that you used your vehicle for business. The rules are different though if you lease your car. If you’re leasing your car, you’ll need to take the standard rate for the entire lease term.