Question

To apply expenses to more than one vehicle to a single business use

a only the actual business expense method may be used

b deduct expenses using the same method for both

c When using the standard mileage come by in the mileage of all vehicles into one entry

d make a separate entry for each vehicle

Answer 1

To apply expenses to more than one vehicle to a single business use

d. make a separate entry for each vehicle

Using more than one vehicle to a single business use one has to maintain individual records for each vehicle and calculate the costs for them separately.

A separate entry should be made for each vehicle at the time of the use of the vehicle.

While using the actual expense method, one can deduct all the expenses of operating the vehicle which includes gas, repairs, insurance, lease payments, depreciation, etc. Using the Standard Mileage Method, one cannot deduct actual car operating expenses. Under this, one can multiply the business miles by the applicable standard mileage rate which helps in keeping the total miles drive.