I bought a new car in 2019. When I used it for business, I was paid a mileage reimbursement. Can I still claim a depreciation credit on my tax return for my vehicle?
If you took a mileage reimbursement from your company you are most likely not eligible to claim a depreciation credit for the same vehicle on your tax return. The reason being, mileage reimbursement includes a depreciation component as well. Therefore, you cannot claim depreciation in addition to the reimbursement.
Your employer might have included the reimbursement in your wages on your W-2. If so, you can deduct your transportation expenses. You can deduct the expenses using either:
- The standard mileage rate — for miles driven
- Actual expenses — for those allocated to the business use of the vehicle. Actual expenses will include depreciation.
Related Resources
Can you include the sales tax in the price of an item your claiming for a deduction? Learn more from the tax experts at H&R Block.
Learn how workers compensation could impact declaring head of household with advice from the tax experts at H&R Block.
How do you notify the IRS of address changes? Learn more about Form 8822 and get answers from the tax experts at H&R Block.
Looking for information on California state tax forms? Read here to find out where to find them, instructions and more from the experts at H&R Block.
