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If you are writing of brakes, tires, oil change you are crazy. The only way you can do that is if you are writing off actual expenses which is not going to be near the tax deduction that mileage is. .55 cents a mile is the mileage deduction. Using mileage, if you are driving an average of 60 -70K miles a year that is a good $30,000 a year in deductions. I think there is actually an IRS reg that caps cabs at around $27,500 per year in depreciation deduction for mileage. Then you still deduct your insurance, cell phone, registration, loan interest, etc. and you never pay taxes in this business.
I saw you paid $12,000 for your vehicle. Using actual expenses depreciation f you depreciate that over 5 years that is about $2500 a year, plus oil changes, gas, maintenance. Even if you get double wammied on both an engine and transmission you are only looking at another $5000 spread over 5 years. Your accountant needs his head examined, and if you are the accountant you need to find one. The problem is that you have to make the selection in the first year so you are going to need to go back and amend your previous returns. If you are doing this part time and don't have another car you are not even allowed to do your taxes using this depreciation method anyway.
I saw you paid $12,000 for your vehicle. Using actual expenses depreciation f you depreciate that over 5 years that is about $2500 a year, plus oil changes, gas, maintenance. Even if you get double wammied on both an engine and transmission you are only looking at another $5000 spread over 5 years. Your accountant needs his head examined, and if you are the accountant you need to find one. The problem is that you have to make the selection in the first year so you are going to need to go back and amend your previous returns. If you are doing this part time and don't have another car you are not even allowed to do your taxes using this depreciation method anyway.
