Are there any restriction or condition that I must follow in order to claim car expense tax deduction by using the standard mileage rate method?
There are five express rules of restriction for claiming deduction by using Standard Mileage Rate
- You must not operate five or more cars at the same time, as in a fleet operation,
- You must not have claimed a depreciation deduction for the car using any method other than straight-line.
- You can not claim standard rates after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle
- You must not have claimed the special depreciation allowance on the car, and
- You must not have claimed actual expenses after 1997 for a car you lease.