Painting Biz Owners: learn which method is better for mileage. #TaxTips #BonusDepreciation

In some cases, if you have an inexpensive vehicle or a very fuel-efficient vehicle or a vehicle that does not cost you a lot to operate, you may find yourself much better off taking half cents per mile versus using actual expenses and depreciation. Inversely, let's say you're a doctor who likes to drive a $150,000 Porsche and you only drive it to the clinic that's a few miles away once a week. You're not going to have a lot of mileage there and you're going to have a lot of depreciation. In that extreme situation, actual expenses are going to be a lot more advantageous to this doctor. But most of us are not in that situation. So talk to your tax professional. Does it make more sense to take actual expenses, or do I have a very efficient, low operating cost vehicle? It might be more beneficial to do the cents per mile.