Quote:
Originally Posted by Mark T. DeNucci, Sr.
It was explained to me that the federal allowance takes into account depreciation. Don't ask me how, just that it is supposed to take it into account. But the federal allowance is still a good deal.
MTD, Sr.
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The allowance is a good deal much of the time. It is certain far easier than the alternative. The alternative could be better for someone who is self-employed such that they use the care almost exclusively for business where all of the costs would be a business deduction.
And the allowance does include depreciation, but no two cars depreciate the same. A person who drives an expensive gas guzzling car, if they tracked all expenses including depreciation, would easily be able to beat the allowance while someone who drives an inexpensive and efficient car would do better with the allowance.