2012 Income Tax FAQ - 119

If you have the option of using either the mileage or actual expenses, you should enter your expenses both ways and our program will use the method that is most beneficial for you. Keep in mind that if you want to use the standard mileage rate for a car you lease, you must choose to use the standard rate for the entire lease period (including renewals).

You cannot use the standard mileage rate if you:

• Use the car for hire (such as a taxi),
• Operate five or more cars at the same time,
• Claimed a section 179 deduction on the car,
• Claimed the special depreciation allowance on the car,
• Claimed actual car expenses after 1997 for a car you leased, or
• Are a rural mail carrier who received a qualified reimbursement.