Once the actual cost method is used,a taxpayer cannot for a later year change to the automatic mileage method.

Question

Quizplus · Accepted Answer

This statement is false. A taxpayer is allowed to change from the actual cost method to the automatic mileage method, or vice versa, for a subsequent tax year. However, once a taxpayer chooses a method for a tax year, they are generally required to continue using that method for all subsequent tax years unless they obtain permission from the IRS to change methods.

Once the Actual Cost Method Is Used,a Taxpayer Cannot for a Later