If an employee​ (or self-employed​ individual) uses the standard mileage rate method for the year in

Asked by bizgrad
Dated: 9th Jun'18 12:03 PM
Bounty offered: $2.00

1. If an employee​ (or self-employed​ individual) uses the standard mileage rate method for the year in which an automobile is​ acquired, may the actual expense method be used in a subsequent​ year? If​ so, what restrictions are imposed​ (if any) on depreciation​ methods? What adjustments to basis are​ required?

a. The actual expense method may not be used in subsequent​ years, once the standard mileage rate method is selected then that has to be used to the life of the automobile.

b. The actual expense method may be used in subsequent years. ​However, MACRS under the regular method may not be used for computing depreciation​ (straight-line method is​ required) and the basis of the automobile must be reduced by 23 cents in 2013 and​ 2012, 22 cents in​ 2011, 23 cents in​ 2010, and 21 cents per mile in 2008 and 2009.

c. The actual expense method may be used in subsequent years. ​ However, MACRS under the regular method must be used for computing depreciation​ (straight-line method is​ required) and the basis of the automobile must be reduced by 23 cents in 2013 and​ 2012, 22 cents in​ 2011, 23 cents in​ 2010, and 21 cents per mile in 2008 and 2009.

d. None of the above.

If an employee​ (or self-employed​ individual) uses the standard mileage rate method for the year in
Answered by bizgrad
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