Should a Business Owner Depreciate Their Car or Take a Mileage Deduction?

In episode 163 of Financially Simple, Justin goes over the two methods of claiming tax breaks on your vehicles.

Should you depreciate the value of your vehicle, or take a mileage deduction? Which is best? Justin looks at both options and explains how each is applied, as well as the pros and cons of each, and a few exceptions to the rule.

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TRANSCRIPT/BLOG: BLOG: Standard Mileage vs. Actual Expenses - Which is Better?

 

TIME INDEX:

00:58 - Should a Business Owner Depreciate Their Car or Take a Mileage Deduction?

01:21 - Standard Mileage Rate vs. Actual Expense Method

03:04 - Standard Mileage Rate

04:12 - 5 Things That You Can’t Do

05:01 - Actual Expense Method

06:03 - Can You Switch Between These Methods?

06:49 - Which is Best For You

08:15 - Guidelines to Choose The Method For Writing Off Business Expenses

11:35 - One Caveat

11:58 - Sign Off

 

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2022 Federal IRS Mileage Rates

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BIO:

Justin A. Goodbread, CFP®, CEPA, CVGA, is a nationally recognized financial planner, business educator, wealth manager, author, speaker, and entrepreneur. He has 20+ years of experience teaching small business owners how to start, buy, grow, and sell businesses. He is a multi-year recipient of the Investopedia Top 100 Advisor and 2018 Exit Planning Institute’s Exit Planner Leader of the Year.

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