Keanu Kane has driven his Chrysler 300 for his professional bodyguard and cat-sitting operation for the past three years. Come tax time for 2015, Keanu naturally wants to go with the method of deducting his car expenses will give the largest tax savings—either the Actual Expense method or the Standard Mileage Method. Of course, Keanu has wisely been using the MileCatcher app, and so he knows exactly the number of business miles he has driven while guarding bodies and sitting cats.
So, the question is, can Keanu switch tax deduction methods for 2015?
To find out the answer, we have to look at how Keanu has deducted his vehicle expenses in the previous year that he has owned the Chrysler.
Note: When Keanu gets a new car, he can start all over again in choosing between the two methods of deducting his car expenses. Whatever method he used in a previous years isn’t binding on his choice.
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