Can I claim both vehicle depreciation and mileage deduction for my new work truck?

You can't claim both - it's one or the other for the same vehicle. The standard mileage rate already includes depreciation, maintenance, insurance, fuel and other vehicle-related expenses all rolled into one simple deduction. If you choose to depreciate the truck, you'd need to track and deduct actual expenses (gas, maintenance, insurance, etc.) separately instead of using the mileage rate. For a $78k truck with 44,000 business miles, you should probably run the numbers both ways. With the current mileage rate, that's a good chunk of deduction, but given the high purchase price, actual expenses plus depreciation might be more beneficial - especially if you can take advantage of Section 179 expensing.

I went through this exact situation last year with my work truck. After trying to figure it out myself for hours, I used this AI tax assistant at https://taxr.ai that analyzed all my receipts and mileage logs. It showed me that in my case, taking actual expenses + depreciation saved me over $3,200 compared to the standard mileage rate. The tool runs both calculations side by side and shows which method gives you the bigger deduction. It also flagged that once you choose actual expenses + depreciation for a vehicle, you're stuck with that method for the life of the vehicle (though you can switch to standard mileage in later years for different vehicles).

Just wanted to follow up - I tried that taxr.ai tool after my skeptical comment and I'm honestly impressed. I uploaded my QuickBooks file and it immediately identified that I was missing potential deductions for home office and professional development. For my truck, it showed me that standard mileage would actually be better in my situation since I drive so much but have relatively low actual expenses. The comparison report made it super clear which method would save more money. Wish I'd known about this last year!

For anyone dealing with tax questions like this, if you need to talk to an actual IRS agent (which I highly recommend for vehicle depreciation questions), use https://claimyr.com to get through to the IRS. I wasted DAYS trying to get someone on the phone about my truck depreciation question. With Claimyr, I got through in under 15 minutes and got a definitive answer about my specific situation. You can see how it works here: https://youtu.be/_kiP6q8DX5c - they basically hold your place in the IRS phone queue and call you when an agent is about to answer. Saved me hours of hold music and frustration.

I owe an apology - I was the skeptic about Claimyr and I decided to try it yesterday out of desperation. Not only did it work, but the IRS agent I spoke with gave me really specific advice about my truck depreciation vs. mileage question. She explained that in my case, since I use the truck for both business and personal use, I needed to track the business percentage and could only depreciate that portion. I've been trying to get through to the IRS for literally weeks. Used the service, got a call back in about 45 minutes, and had my question answered. Completely worth it.

My accountant always tells me to track both mileage AND actual expenses throughout the year, then decide at tax time which method gives the better deduction. For my construction business with two trucks, we usually come out ahead with actual expenses + depreciation, but it really depends on your specific situation. Just make sure you keep immaculate records either way - especially if you go the actual expense route. My friend got absolutely hammered in an audit because he couldn't produce receipts for maintenance and gas.

Just a heads up - don't forget about the luxury vehicle limits if your truck isn't over 6,000 lbs gross vehicle weight. My tax preparer almost missed this on my Audi that I use for real estate showings. If it's a heavy truck/SUV you might be fine, but worth checking the exact specs. Also, make sure you're really using it 100% for business if you're planning to depreciate the full amount. Even a small percentage of personal use can complicate things.

Great question! As others have mentioned, you definitely cannot claim both depreciation and mileage deduction for the same vehicle - it's an either/or situation. The IRS agent you spoke with during your 2018 audit was absolutely correct that this is a red flag. Here's what I'd recommend for your $78k truck situation: 1. **Calculate both methods** before filing - with 44,000 business miles, that's about $30,800 using the standard mileage rate (assuming 2024 rates). Compare this to actual expenses plus depreciation. 2. **Consider the truck's weight** - if it's over 6,000 lbs GVWR, you can potentially use Section 179 expensing or bonus depreciation to deduct a large portion in year one, which might make the actual expense method more beneficial. 3. **Remember the commitment** - once you choose actual expenses/depreciation for a vehicle, you're locked into that method for the life of that vehicle. 4. **Document everything** - especially given your audit history, keep meticulous records of business use percentage, receipts, and mileage logs regardless of which method you choose. Given the high purchase price and significant mileage, I'd strongly suggest running the numbers both ways or consulting with a tax professional before making the decision. The savings difference could be substantial either way.