Tom Copeland Question on Vehicle Deprecation

[frugalmama4]

Hello,

Can I transfer an 100% business use vehicle into shared use (50% or less)??

History-

Placed in service: 2012
Actual Expense method claimed on 2012 taxes "first year"
50% Bonus deprecation rule used on 2012 taxes
Just traded it in for a personal use vehicle (like-kind-trade "value")

Note: I do have another personal use vehicle that I can re-place "move into business use" the traded in vehicle with.

However, I need to list all vehicles as a shared auto (50% or less).

Thanks Tom

[TomCopeland]

vehicle

Hello,

Can I transfer an 100% business use vehicle into shared use (50% or less)??

History-

Placed in service: 2012
Actual Expense method claimed on 2012 taxes "first year"
50% Bonus deprecation rule used on 2012 taxes
Just traded it in for a personal use vehicle (like-kind-trade "value")

Note: I do have another personal use vehicle that I can re-place "move into business use" the traded in vehicle with.

However, I need to list all vehicles as a shared auto (50% or less).

Thanks Tom

To use the like kind exchange rule you must exchange the business vehicle for another vehicle used in your business. The newer vehicle doesn't have to be used 100% for your business. So, the answer to your question is yes.

[frugalmama4]

Thanks for the quick response Tom,

So due I have to claim the actual expense method on the NEW vehicle since this was the method used on the old vehicle "traded"? Or can I now due the standard mileage rate?

Thanks so much!!

[TomCopeland]

car

Thanks for the quick response Tom,

So due I have to claim the actual expense method on the NEW vehicle since this was the method used on the old vehicle "traded"? Or can I now due the standard mileage rate?

Thanks so much!!

I looked at IRS publication 463 but couldn't find an answer to your question. Sorry. My advice is contact the IRS - 800-829-1040.

[frugalmama4]

I looked at IRS publication 463 but couldn't find an answer to your question. Sorry. My advice is contact the IRS - 800-829-1040.

Yea, I looked in the pub too and didn't see an answer, I will call.

Thanks Tom!