Default Style Register
Daycare.com Forum
Daycare and Taxes>Tom Copeland Question on Vehicle Deprecation
frugalmama4 02:49 PM 12-09-2013
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
Reply
TomCopeland 03:45 PM 12-09-2013
Originally Posted by 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
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.
Reply
frugalmama4 04:09 PM 12-09-2013
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!!
Reply
TomCopeland 11:05 AM 12-10-2013
Originally Posted by 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!!
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.
Reply
frugalmama4 05:10 AM 12-11-2013
Originally Posted by TomCopeland:
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!
Reply
Tags:vehicle deprecation
Reply Up