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Depreciation & Recapture

Question: On what form and line do I deduct the standard mileage rate for my business travel, and do I also need to figure depreciation of the vehicle?

Answer:

Many taxpayers find using the standard mileage rate an easier way to expense their vehicle. The standard mileage rate:

  • May be used in calculating your automobile expense and
  • Already includes depreciation expense

Instead of the standard mileage rate, you can use the actual expense method. If you use this method, you need to figure depreciation for the vehicle.

The business use of an automobile is claimed on:

  • Line 9 and Part IV of Schedule C (Form 1040) (PDF), Profit or Loss From Business or, if eligible, line 2 and Part III of Schedule C-EZ (Form 1040) (PDF), Net Profit From Business, if you are a sole proprietor.
  • Form 2106 (PDF), Employee Business Expenses or, if eligible, line 1 and Part II of Form 2106-EZ (PDF), Unreimbursed Employee Business Expenses, and then with other employee business expenses on line 21 of Schedule A (Form 1040) (PDF), Itemized Deductions.

Additional Information:


Category: Sale or Trade of Business, Depreciation, Rentals
Subcategory: Depreciation & Recapture

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224