A taxpayer who uses the automatic mileage method for the business use of an automobile can change to the actual cost method in a later year.

Question

Quizplus · Accepted Answer

According to IRS regulations, a taxpayer can switch from the automatic mileage method to the actual cost method or vice versa in a later tax year, but once the actual cost method has been used for a vehicle, it cannot be switched back to the standard mileage rate method.

A Taxpayer Who Uses the Automatic Mileage Method for the Business