Is a Car an Asset? Explained
These collector cars have a special fan base willing to spend money on these appreciating collections. This is because of both the increased mileage and the cost of repairs as a car gets older. In addition, cars depreciate in value over time due to normal wear and tear. Neither deduction method is inherently better than the other — it all depends on your situation. As you can see from the examples we used, even though the business miles were the same in both examples, the standard mileage rate resulted in a larger deduction in this case. It is an all-important number that shows the difference between your current assets and liabilities. But the process isn’t as simple as buying a car and calling…