1 Car 2 businesses - standard mileage or actual expenses

Forum|Forum|1 year ago
April 25, 2024
2 replies
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Greetings,

I have one car and two businesses.

Can I use standard mileage for one business and use actual expenses for the 2nd business?

If so, why would I do this?

Thanks,

Best answer by Vanessa A

Yes, you can do that.

Why would you do this? Or how would you do this?

For the first business you would enter the miles driven and select the standard mileage.

For the second business, you would enter your miles driven for all purposes including the other business and then miles driven for business number 2. Your expenses will be allocated based on the percent of miles driven for business 2 compared to all miles.

So in reality, doing it both ways doesn't give you any extra benefits because everything is still based on miles. You wouldn't be able to claim the full cost of an engine replacement on business 2, it would only be prorated based on the percent of miles driven for business 2.

Vanessa AAnswer

Yes, you can do that.

Why would you do this? Or how would you do this?

For the first business you would enter the miles driven and select the standard mileage.

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BobK59Author

Is there any IRS docs that explain this with multiple business examples?

I didn't find anything with my search.

Thanks!

AmeliesUncle

Assuming you are referring to two self-employed businesses on Schedule Cs, no, you are not allowed to use the Standard Mileage Rate for one business and the Actual Expenses on the second business if it is the same vehicle.

The rules apply at the owner and vehicle level, not the business level.