Christian Posted March 7, 2015 Report Share Posted March 7, 2015 Since a component of this rate is depreciation does it reduce after five years to reflect the full depreciation of a vehicle used for business? Oddly enough I have never needed to address this. In reading the regs I do not see where this is addressed. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 8, 2015 Report Share Posted March 8, 2015 No, you get to use the full mileage rate even if the cents per mile depreciation fully depreciates a vehicle. Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 8, 2015 Report Share Posted March 8, 2015 (edited) many, many years ago the SMR did drop after a certain number of years of using the it on the same vehicle. The reason was based on exactly what you said - the assumed depreciation. Edited March 8, 2015 by JohnH 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 8, 2015 Report Share Posted March 8, 2015 (edited) Just out of curiosity, I ltook a trip down memor lane and looked up an old set of instructions on the SMR. I think the change occurred in the late 80's or early 90's., but I checked instructions for a 1980 return because that was an easy one for me to find. The SMR was 20 cents per mile for the first 15,000 miles, then 11 cents per mile for everything over 15,000 miles. But if the vehicle was "fully depreciated", the rate was 11 cents per mile beginning with the first business mile. So we can presume that IRS allocated 9 cents per mile as the depreciation component at that time. Edited March 8, 2015 by JohnH 1 Quote Link to comment Share on other sites More sharing options...
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