New Vehicle for Farm Use 60% Business Use first year then 30% thereafter

Forum|Forum|5 years ago
December 17, 2020
7 replies
32 views

Hello I have purchased a new Pickup Truck (Over 6000lbs) that I expect to have 60% business use this year.

For years 2 through 5 I expect the percent of business use to be less than 50% most or all years.

How is the best way to handle?

I paid $34k for the truck and my AGI will be over $150+k this year and next

Thanks!

TurboTax Home & Biz Windows

M-MTax

Level 15

If biz use drops below 50% you could have recapture. Car/truck expense

TreeFarmGuyAuthor

Level 3

Thanks

One follow-up question

Is it an option to complete a straight line depreciation form/worksheet and include the deduction amount in Turbo Tax under Schedule F - Miscellaneous Expenses.

This way I could go back to the standard mileage deduction in a future year once I fall below 50% business use threshold?

What do you think?

Thanks again

M-MTax

Level 15

If you don't use the standard mileage the first year you can't switch back to it. If you're going to drop lower than 50% then use the standard mileage from the start.