New Auto Two Schedule C's

[RDennis]

I have a client who has two Schedule C businesses. She uses her new auto (purchased in 2009) 70% in one business, but only 10% in the other. I am unable to find anything in IRS pubs 463 and 946 addressing this issue. But, I thought I recall reading years ago, that one had to take standard mileage in this situation. Or, perhaps straight-line depreciation (No MACRS and no 179) for both. Does anyone have any insight into this situation?

Thanks for any help,

RDennis

[TAXBILLY]

Pages 15-23:

http://www.irs.gov/pub/irs-pdf/p463.pdf

taxbilly

[RDennis]

I had read all that, and it appears to me that there are really two choices. One is to ignore the amount of auto expense on the 10% usage business and count that as commuting, etc. I suppose the second it is to take straight line in both cases. What do you think?

[TAXBILLY]

I had read all that, and it appears to me that there are really two choices. One is to ignore the amount of auto expense on the 10% usage business and count that as commuting, etc. I suppose the second it is to take straight line in both cases. What do you think?

Don't understand that approach. You have a client that uses one vehicle 80% of the time for business. The fact that it is used in two Schedule Cs doesn't make the vehicle one which is over 50% and one under 50%.

Unless there is a distinct advantage to using the actual method, I usually use the mileage rate the first year so that in future years I still have the option of switching.

taxbilly

[taxxcpa]

Don't understand that approach. You have a client that uses one vehicle 80% of the time for business. The fact that it is used in two Schedule Cs doesn't make the vehicle one which is over 50% and one under 50%.

Unless there is a distinct advantage to using the actual method, I usually use the mileage rate the first year so that in future years I still have the option of switching.

taxbilly

Normally the actual expense is only better in the first year, then you are stuck with it resulting in less deductions in the future. I almost never use actual expense.