converted vehicle from personal to business use.

Forum|Forum|11 months ago
April 15, 2025
1 reply
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Converted vehicle from personal to business and used 55% of the time. KBB said FMV is only $1384 trade in vs. $2500 if sold privately. I used the lower of the two. As I noticed some others having a challenge when taking this path. Although these are small numbers, it's getting the correct calculations and making sure there's no recapture in the short life of this vehicle. The vehicle is 10 yrs old and I don't see it lasting much many more.

It seems that 5 years is longer than this may last. lol... It seems I have several options with how much I can depreciate the first year. The software calculated $277 for the first year, with AMT depreciation at $69, but when I got to the second year, software populate $700 and $250.

I would appreciate some clarity. Thank you!

PatriciaV

Rather than claiming depreciation for an aging vehicle, you might consider taking the Standard Mileage Deduction. This avoids many issues relating to depreciation when the business use drops below 50% or when you sell / dispose of the vehicle.

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