1040-US: Optimize Method is grayed out on Vehicle/Listed tab

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Question

Is the optimization no longer available for luxury autos after the first year of service?

Answer

The ability to optimize a 1040 luxury auto between standard mileage and actual cost is limited to the first year the auto is placed in service. This is because changing between the two options after the first year may or may not be allowed and may entail adjusting the basis and life of the asset.

Related topic: Auto expense FAQs (1040)

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