Question

Chris has decided to start a taxi company and has purchased seven passenger vehicles he is hired 15 drivers so that he can keep all the vehicles on the road at all times what are his options for the vehicle expense?
Chris can use SM or for up to four of the vehicles but he will have to use actual expense for the other three.
Christmas use actual expense for all of the vehicles
Chris can make a different decision for each vehicle
Chris will have used ask him or in the first year so that he can choose SMR or actual expenses in the future years

Answer 1

In the given case Chris Cruz started a Taxi company with purchasing 7 passenger vehicle. It means Chriz Cruz star a new segment of business and it believes that he has not idea about SMR and Actual Expenses then it is a good idea to use SMR for first year use the car for business. Choosing this route leaves all option open for later years to Chris Cruz.

 

Hence option (D) shall be best option for Chris Cruz, because, if he opt SMR in first Year then he can choose SMR or actual expenses in future years as per his benefits.

 

However this rule does not applicable in case of leased vehicles. In leased vehicle if use SMR for the first year then it must used for entire rest of the lease period.

The option (D) is best option.