Standard Mileage Rates


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Note: In order to use the standard mileage method, you must choose this method in the first year the vehicle is placed in service. In later years you can choose to use the standard mileage rate or actual expenses.

* When you use the standard mileage rate for your vehicle deduction, the depreciation on the vehicle is not reported separately, rather, the IRS figures in depreciation as a part of the mileage rate.

Since depreciation accumulates, each year's business mileage affects the adjusted basis of the vehicle. The adjusted basis will, in turn, be used to determine the gain or loss when the vehicle is sold or disposed of, so keeping good records is essential.