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Updated almost 8 years ago,
Vehicle expense vs. mileage rate
What are the pros and cons of vehicle expenses? Ive read there are two different ways to write off this expense. Actual expenses like car value depreciation plus insurance, gas, repairs, oil changes or the other option straight mileage. Im confused as to which method is best for my situation. I have a 15 yr old vehicle that I have depreciated some time ago. Im currently keeping track of miles and using flat mileage rate. Is this the best tax advantage? I usually drive 4K miles (@ $.52/mile) anually but car repairs at my vehicles age could be costly.
If I buy a new vehicle what is the best method of expense write off?
If I use the car repair method do I still have to keep track of miles of what/where/when in a log book?