Question

Different tax deductions on different business vehicles?

Forum|Forum|3 years ago
May 9, 2022
1 reply
0 views

I’m a 1099 self employed delivery courier. I currently have a van that I use solely for business purposes. If I were to acquire a new vehicle this year for business use, would I use the standard mileage deduction for my current vehicle, and section 179 depreciation for the new vehicle I buy?

leeloo

Yes, you can take two different types of depreciation for two different business vehicles. You must use the property more than 50% for business to claim any section 179 deduction

What are you going to do with your old car? Retire it to personal use? Continue to use both for work? Sell it? At the point in time when you sell, you must recapture the depreciation taken. Even though you used standard miles, you must use the mileage recapure rate found in Pub 463.

https://www.irs.gov/pub/irs-pdf/p463.pdf

S

SavvydespAuthor

Actually I had a follow up question! So in the beginning of the work day, I commute to the place where I pick up packages for delivery that day, which are personal miles. However, I deliver them to an area quite far away from where I live. At the end of my day when I deliver my last package, I’m usually 75-80 miles away from my where I live, and have to drive an hour and a half to get home. My question is, is that considered all personal miles as well? If I were to drive back to the terminal from which I was dispatched, would it then be considered business miles?