Under the automatic mileage method, depreciation is not taken into account in the mileage rate allowed.

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The standard mileage rate, often referred to as the automatic mileage method for calculating vehicle expenses for business use, includes an allowance for depreciation. This rate is designed to cover all the costs associated with operating a vehicle, including depreciation, fuel, maintenance, and insurance.

Under the Automatic Mileage Method, Depreciation Is Not Taken into Account