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This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
In this episode you will learn: - The standard mileage rate offers simplicity, while the actual expense method requires detailed record-keeping of costs like gas, insurance, and depreciation. - The first-year choice is critical: using the standard mileage rate initially allows you to switch to the actual method later, but choosing the actual method first (with accelerated depreciation) prevents you from ever using the standard rate for that car. - For leased vehicles, choosing the standard mileage rate in the first year locks you into that method for the entire lease term. - Parking fees and tolls for business travel are deductible under both the standard and actual methods, which is a common exam trap. - A contemporaneous mileage log is mandatory for both methods; without it, the IRS can disallow the deduction.
For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
