Daycare.com Forum

Daycare.com Forum (https://www.daycare.com/forum/index.php)
-   Daycare and Taxes (https://www.daycare.com/forum/forumdisplay.php?f=8)
-   -   Business Use % Vehicle Question (https://www.daycare.com/forum/showthread.php?t=43858)

Jenniferdawn 03-29-2012 02:19 PM

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?

Jenniferdawn 03-29-2012 02:37 PM

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

Michael 03-29-2012 04:08 PM

I'm sure Tom will reply at some point. I placed some TAGS on the bottom left that may be helpful until then.

TomCopeland 03-30-2012 08:13 AM

car expenses
 

Originally Posted by Jenniferdawn:
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 on vacation til Sunday. I'll reply to your question late Sunday.

Jenniferdawn 03-30-2012 11:09 AM

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.

TomCopeland 04-06-2012 08:21 AM

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

Jenniferdawn 04-06-2012 11:07 AM

Awesome! Thanks so much Tom. I thought I was understanding that right, but it seemed too good to be true. happyface

Unregistered 04-11-2012 02:25 PM

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

TomCopeland 04-12-2012 08:05 AM

car depreciation
 

Originally Posted by Unregistered:
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

I can't figure out how these numbers were arrived at, so I can't tell you what you can depreciate in 2011. You need to ask the person who did this depreciation, or find a tax preparer to help you.

Atroya 07-23-2012 10:29 AM

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?

TomCopeland 07-24-2012 07:55 AM

Used van
 

Originally Posted by Atroya:
Are there any deductions I can take for buying a used van that will be used partly for the daycare, partly for personal use?

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).


All times are GMT -7. The time now is 11:30 PM.