Is the standard mileage method available for a truck in tax year 2024 for a single member LLC that placed a 2023 pickup truck in service in 2024 and claimed Section 179?
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No, the standard mileage method is not available in tax year 2024 for a single member LLC that placed a 2023 pickup truck in service in 2024 and claimed Section 179 on the vehicle.
Here’s the detailed reasoning:
1. Standard Mileage Rate Eligibility
The standard mileage rate is an optional method for deducting vehicle expenses. To use it, you must choose it in the first year the vehicle is placed in service. In later years, you can switch between the standard mileage rate and actual expenses, but only if you were eligible in the first year.
However, there are specific restrictions:
- You cannot use the standard mileage rate if you claimed a Section 179 deduction on the vehicle.
- You cannot use the standard mileage rate if you claimed any depreciation method other than straight line.
- You cannot use the standard mileage rate if you claimed bonus depreciation on the vehicle.
"You cannot use the standard mileage rate if you:... Claimed a section 179 deduction on the car; Claimed the special depreciation allowance on the car; Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS...".
2. Section 179 Deduction
If you claim a Section 179 deduction for a vehicle, you are specifically prohibited from using the standard mileage rate for that vehicle for that year or any future year.
"If you choose to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. In later years, you can choose to use either the standard mileage rate or actual expenses.... You cannot use the standard mileage rate if you:... Claimed a section 179 deduction on the car...".
3. Application to Single Member LLCs
A single member LLC is disregarded for federal tax purposes and is treated as a sole proprietorship unless it elects otherwise. The rules for vehicle deductions, including the standard mileage rate and Section 179, apply the same way to a single member LLC as to any sole proprietor.
4. Placing the Vehicle in Service
The key is the year the vehicle is placed in service. If the pickup truck was placed in service in 2024 and Section 179 was claimed in 2024, the standard mileage rate is not available for that vehicle for 2024 or any future year.
5. Supporting Code and Guidance
- Publication 334 (2024): "You cannot use the standard mileage rate if you... Claimed a section 179 deduction on the car...".
- Publication 225 (2024): "If you claim a section 179 deduction for a vehicle, you cannot use the standard mileage rate for that vehicle".
6. Conclusion
If you claimed Section 179 on the pickup truck placed in service in 2024, you are not eligible to use the standard mileage rate for that vehicle in 2024 or any future year. You must use the actual expense method for deducting vehicle expenses.
If you need further clarification or have a different scenario (e.g., you did not claim Section 179), please provide more details.
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