Let’s start with an example.
Say that in 2022 you bought a $50,000 SUV that qualifies for both Section 179 expensing and bonus depreciation. You drive this SUV 15,000 miles during the year, of which 87 percent are business miles.
Let’s further suppose that you can qualify to use the IRS mileage rates:
58.5 cents a mile from January 1, 2022, to June 30, 2022
62.5 cents a mile from July 1, 2022, to December 31, 2022
You plan to use the new SUV for three years and then trade it in.
Would you be cheating yourself by using the mileage rates?
If so, how badly would you cheat yourself?
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