title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Friday, March 11, 2005
 

Q:

kerry,  i am a traveling physical therapist (i work for a company that finds contracts in different states.....i've been back and forth from florid to connecticut...... and those contracts are 3 months at a time).  can i take a section 179 deduction for my vehicle since i drive over 50% it's total miles in 2004 for work? thank you

 

A:

As has long been the case for business vehicle usage, you have the option of claiming the IRS standard per mile rate or the actual expenses of operating your vehicle (including Section 179 and normal depreciation), prorated to the business percentage. 

I have always believed it's a good idea to calculate the deduction both ways and then use the method that gives you the best tax savings.  However, if you do choose to take the actual expense method and claim the Sec. 179, you will need to continue using that method for future years for that particular vehicle.

This is standard tax info, that any competent tax pro can help you with.

Good luck.

Kerry Kerstetter

 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/11/2005 04:01:00 PM Send this post:

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