Business Use % Vehicle Question
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?
|
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. :o |
I'm sure Tom will reply at some point. I placed some TAGS on the bottom left that may be helpful until then.
|
car expenses
Originally Posted by Jenniferdawn: |
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.
|
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 |
Awesome! Thanks so much Tom. I thought I was understanding that right, but it seemed too good to be true. happyface
|
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 |
car depreciation
Originally Posted by Unregistered: |
What about buying a used van?
Are there any deductions I can take for buying a used van that will be used partly for the daycare, partly for personal use?
|
Used van
Originally Posted by Atroya: |
All times are GMT -7. The time now is 08:09 PM. |