Help Centeror the actual expense method to compute the deduction used in a farming operation. You can use the standard mileage rate the actual expense method to compute the deduction.
Standard Mileage Rate (56.0¢ Per Mile for 2021)
When choosing the standard mileage rate, there is no additional deduction for depreciation, rent or lease payments, or actual operating expenses. You can use the standard mileage rate for 2021 only if you:
- Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle into service, or
- Leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998).
Continue reading: Farm Vehicles and Fuels 2021