Car Broke Down - Can I deduct on taxes ?

Hey Guys n Gals - My car is my primary and means of transportation for MSC assignments. Well, yesterday she broke down, and is now at the mercy of the auto shop. I'm scared of the repair bill. Am I allowed to deduct it from my taxes next year ?

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Depends. If you take the standard mileage duction, no. Repair expenses are already factored into that rate. If you deduct actual vehicles expenses, then yes, at least the percentage equal to the business use of the vehicle. If you used the mileage rate last year, you can switch to actual expenses for this year if you think it will help. Just avoid taking anything other than straight line depreciation if you want to switch back to the mileage later.

And if is the first year using the car for business, think hard before taking actual expenses. If you don't use standard mileage the first year, you can never use it later (for that car.)

Edited 1 time(s). Last edit at 05/23/2023 05:25PM by mystery2me.
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