We bought a new van in 2011 and are planning on using the actual vehicle expense method for taxes and to take advantage of the 100% bonus depreciation rule this year. One thing I'm not clear about though. The business use last year was 41%. Do I use that 41% for claiming the deduction for these 2011 taxes only and then come up with a new percent and recalculate each future year what the deduction is, or do I stick with the first years 41% for all 5 years of deductions?
Business Use % Vehicle Question
Collapse
X
-
-
Actually, I'm more confused than I thought. :confused: I'll give you the numbers and you can help me figure this out.
My depreciation deduction for my van for 2011 is $1494.00. (37,352 (van cost) x .40 (business use) = 14,940 x .10 (first of 5 year straight line depreciation) = $1494.00) But the 100% depreciation rule says the deduction limit is raised by an additional $8000. Does that mean I add $8000 to the $1494 for my deduction? Or do I do 40% of the $8000?
Please anyone, I'm needing some help here.- Flag
-
car expenses
Actually, I'm more confused than I thought. :confused: I'll give you the numbers and you can help me figure this out.
My depreciation deduction for my van for 2011 is $1494.00. (37,352 (van cost) x .40 (business use) = 14,940 x .10 (first of 5 year straight line depreciation) = $1494.00) But the 100% depreciation rule says the deduction limit is raised by an additional $8000. Does that mean I add $8000 to the $1494 for my deduction? Or do I do 40% of the $8000?
Please anyone, I'm needing some help here.- Flag
Comment
-
Thanks Tom! I appreciate it. I'll look at the tags too, though I've already done some searching and read Tom's books thoroughly and I'm still a bit confused.- Flag
Comment
-
van depreciation
If your van was purchased new -
$37,352 x 40% business use = $14,940
$14,940 x 10% = $1,494
+ $8,000 100% bonus rule = $9,494
Depreciation deduction for 2011: 9,494- Flag
Comment
-
Awesome! Thanks so much Tom. I thought I was understanding that right, but it seemed too good to be true. happyface- Flag
Comment
-
Depreciation of vehicle
First time doing my own taxes and I am confused on this depreciation.
The vehicle cost $43679.00
Tax for 2008 depreciation $13977.00 100% business use
Tax for 2009 depreciation $2850.00 100% business use
Tax for 2010 depreciation $1775.00 100% business use
Not sure how to figure out the depreciation for 2011 at 90% use or do I have any left to use? Thanks for any help that I can get
Melissa- Flag
Comment
-
car depreciation
First time doing my own taxes and I am confused on this depreciation.
The vehicle cost $43679.00
Tax for 2008 depreciation $13977.00 100% business use
Tax for 2009 depreciation $2850.00 100% business use
Tax for 2010 depreciation $1775.00 100% business use
Not sure how to figure out the depreciation for 2011 at 90% use or do I have any left to use? Thanks for any help that I can get
Melissa- Flag
Comment
-
Used van
There is no difference in the rules when buying a new or used van. You can use the standard mileage rate or you can claim the business portion of the actual expenses of the van (including depreciation).- Flag
Comment
Comment