Vehicle used 100% for business. Depreciation

Forum|Forum|1 year ago
October 13, 2024
18 replies
80 views

I purchased a vehicle in April of 2019 for 100% business use for approximately $50,000. The vehicle is/was titled in my name not business but was never used for personal purposes. Sold the vehicle in October 2024 for $29,500 and paid off with additional personal funds of $36,000. Claimed depreciation for vehicle on 2024 tax for entire year (forgot). What do I need to do now to correct oversight and avoid possible issue with IRS?

Also, since vehicle was titled in my name and not in the business name would it be considered a personal asset used for business purposes or is this going to be another potential problem? I am sure that some of you tax gurus can figure out how much depreciation was paid versus the amount for which the vehicle sold as I obviously took a loss on the sale but the vehicle was an ongoing expense that was unnecessary so I decided to sell it before it devalued further.

JME

Not A Product Question

Anonymous_

Level 15

No text available

mudtech61Author

Level 2

tagteam,

Depreciation was taken out in for vehicle on tax filed in 2024 for tax year 2023.

The vehicle has been depreciated on the business tax returns for tax filing years 2019,2020,2021,2022 and 2023. Tax year 2024 is still in progress and yet to end for filing.

The business is a single member LLC with a sub chapter S provision. It is not a sole proprietorship.

The vehicle was an individual purchase primarily to use for business but not titled in the business name in case it could be used for personal reasons should the need arise. The personal use issue never transpired.

Hope this helps but the business never owned the vehicle, it was only purchased to fill a business purpose that never developed.

mudtech61