 So it's comparing that to the actual uh miles as well. Now notice if we if we do that standard mileage rate we can still add parking fees and tolls so I can go back on over here. I can't add all the other kind of maintenance stuff but parking fees and tolls if I tack on you know if I was I had a I had a rough year I'm put a thousand for parking fees and tolls because I just don't care where I park I park I'll just I get to deduct it man so then you could see it increase by by another five thousand or that one thousand to five thousand eight hundred and forty. Okay so if we did the actual method we could put it into the depreciation schedule and try to do both of these and let the software kind of pick the one which would be most favorable but you got to be careful on doing that because it might be favorable in year one to do the direct write-off method but then in year two to do the mileage method but you can't do that oftentimes because the iris is skeptical of of you doing that because the reason you would do that is because the depreciation method sometimes you're going to try to use an accelerated depreciation method in year one which means you're going to you're going to deduct more in year one so they want consistency a little bit of consistency in the methods that are being used so but let's like let's take a look at that I'm going to delete this piece and I'm going to go into the deductions and let's go into our depreciation thing here now I'm just going to put a generic truck here but note in practice you would want to have the make model year of the truck possibly the license plate number that becomes really important anytime you're doing some kind of depreciation schedule because even though it might not cause a problem in the current time frame in the future when you sell the truck or do something to it or any piece of equipment you need to be able to identify the piece of equipment that is actually on hand to what's on the depreciation schedule in order to take the appropriate action from the depreciation schedules and that's a lot easier to do if you're quite detailed in the descriptions when you put them on the books so I'm going to say this is schedule c or form 2106 we're going to get more into depreciation in future presentations so I'm just going to I'm not going to dive into it in too much detail just to show the difference between the two methods here for the auto and then we'll dive into depreciation more in the future I'm going to say this is as of 010122 the cost now note that the higher the cost of the vehicle the more likely then it might be more beneficial you would think to do a direct write-off method because the depreciation is going to be more substantial if you bought the truck for like five thousand dollars or something like that it's more likely that over the life of the truck you might want to use the mileage method for example and if you bought the truck for a more a higher amount let's say sixty thousand it's more likely you're going to be benefiting from the the the direct write-off method because the depreciation might be substantial although it could be limited then we got the 179 we'll talk about later and the special depreciations which we'll talk about later but note that when we get into the depreciation you have to basically apply the proper depreciation method to the type of equipment that you have in this case an automobile so we have five-year property makers that has auto limitations and then we've got the straight line for auto limitations now and then we've got the five-year six thousand pounds uh with with the limits applied so it gets a little bit messy in terms of the of the item to apply to to pick just note that if it's over six thousand pounds you've got a big truck then it might be thought of more as a piece of equipment as opposed to the mile to the a standard automobile and therefore you might have less limitations when you're thinking about uh maximizing the amount that you can get for uh depreciation they're going to be they're going to be more skeptical with a just a a car that you're driving around to visit clients or stuff like that because you would think that if you could do that if you were to just do that for business you can get a pretty cheap car or cheaper car to handle the that kind of thing and if you're driving a two hundred thousand dollar car just to drive to different places then they're going to be skeptical of that that's why you might have auto limitations here so and then if it's so you could pick the straight line or i'm going to pick the five-year with the auto limitations okay so that's gonna we might dive into that more detail 179 and future presentations for the depreciation but for now we just want to compare and contrast these two methods so then i'm going to go down here and i'm going to go to the car there it is and i'm going to say did we want use a vehicle be available for our duty no other vehicle vehicle is used primarily that's i'm going to say that's true employers know and then i'm going to put the mileage in here in a similar way as we did before because if we did not use this car a hundred percent for business then the mileage is going to be a way that they're going to do a ratio type of analysis so let's this time say that that we drove it for 15 000 total and let's say that that we're going to imagine that we drove it 80 80 percent for business so i'm going to say if it was 15 000 times 0.8 that's going to be 12 000 divided by two so let's say we drove it 6 000 and 6 000 community miles i'll say is a thousand and okay so now all these other expenses will also become relevant down here so the parking fees let's just say it was 60 this time the the gas lube and whatnot let's say our 700 repairs let's say our let's say our 3 40 tires 140 let's say insurance insurance 3 90 miscellaneous auto license 100 personal property interest and so on all these other items down here are possibly things that we can ride off the primary one often being of course the the gas so now we're trying to depreciate the cost of the car which we have to allocate over the life of the car but we might get some front loaded depreciation due to the depreciation schedules of the tax code instead of a straight line depreciation and we get these costs of us expenditures above that like the gasoline and the repairs and whatnot so let's go back on over and see what we calculate here so now we've got our depreciation schedules being calculated if i go to the schedule c then notice we've gotten the car and truck to 1 396 but also we've got this huge number down here for the depreciation right of the 15 360 now so obviously that's a lot larger than what we had before in the mileage method if i look at the comparison between the two i could say okay the the total mileage 15 000 this time we said 6000 and 6000 each for a total of 12 000 that's an 80 percent business versus personal because we're saying 12 000 business versus personal that percentage is going to be applied then to both the mileage method and the direct method