Contact UsHow much depreciation is included in the standard mileage rate deduction
The standard mileage rate deduction can be used instead of actual automobile expense deductions for business usage of vehicles other than for business fleets of 5 or more vehicles in use at any one time. The standard mileage rate does not include parking and tolls or car washes, but it does include a per mile rate for depreciation.
Given that depreciation lowers the value of the car being used on the sale or exchange of that car for another car/vehicle, the capital gains on the sale should increase if one accumulates the business mileage of the car over the years and decreases the book value of the car.
Depreciation is always done on an allowed or allowable basis.
Given that depreciation lowers the value of the car being used on the sale or exchange of that car for another car/vehicle, the capital gains on the sale should increase if one accumulates the business mileage of the car over the years and decreases the book value of the car.
Depreciation is always done on an allowed or allowable basis.
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Tax Professional Answers
David Hughey, EA, MAcc
According to US tax laws, the portion of the standard mileage deduction that is used for depreciation is twenty-five cents per mile. The remainder covers other kinds of actual expenses on the car itself. Tolls and parking fees are not included in the standard deduction and these can be included as separate deductions on a tax return.
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365 weeks ago