Discussion:Two Vehicles used for business????

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Discussion Forum Index --> Consumer Questions --> Two Vehicles used for business????

WhitehouseDH (talk|edits) said:

21 February 2009
#1) Let's say I have a business, but sometimes I use a more expensive car since I put less miles on it yearly and the percentage of usage is higher thereby creating a more efficient use (for dueduction) of those miles in that particular car.

If I use actual usage on my primary work vehicle, must I use that on the secondary as well?


  1. 2) And what if my wife and I trade vehicles to use for work because she needs to show clients homes in the SUV and so I take the smaller car, if she's better off using standard rate on her car, but I'm using actual on the SUV, does the mileage calculation change based on who's driving it for which business, or which type of deduction the vehicle is designated as???

Bjeter (talk|edits) said:

15 March 2009
Once you put a vehicle in service in any business, you make an election to use either the standard mileage rate or actual expenses. Once you elect actual expenses, you are stuck with it as long as you own the vehicle, regardless of how many businesses you use the vehicle in. You can't let a related party use the vehicle in another business without him or her using actual expenses as well. The election follows the vehicle, not the preference of each person who uses the vehicle. If you elect the standard mileage rate, you can switch once to the actual expense method, but then you are stuck with the actual expense method for the remaining life of the vehicle. You can make the election on a vehicle by vehicle basis until you get more than 4 vehicles operating simultaneously in a business or you are using your vehicle for hire (i.e.- a taxi or limo).

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