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Old 12-09-2013, 03:49 PM
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frugalmama4 frugalmama4 is offline
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Default Tom Copeland Question on Vehicle Deprecation

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
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Old 12-09-2013, 04:45 PM
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TomCopeland TomCopeland is online now
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Default vehicle

Quote:
Originally Posted by frugalmama4 View Post
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.
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Old 12-09-2013, 05:09 PM
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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!!
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Old 12-10-2013, 12:05 PM
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TomCopeland TomCopeland is online now
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Originally Posted by frugalmama4 View Post
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.
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Old 12-11-2013, 06:10 AM
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frugalmama4 frugalmama4 is offline
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Quote:
Originally Posted by TomCopeland View Post
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!
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