Vehicle Depreciation

[hntrust]

I bought an SUV (weight 4,800 lbs.) in January 2022 and used it 35% for my self employed business.  Can I depreciate it using section 179 or other methods?

[AliciaP1]

You can claim partial depreciation through the standard mileage rate under the Business Vehicle Expenses section in TurboTax, but you cannot claim a Section 179 deduction because you do not use it more than 50% for your business.

[hntrust]

Can I claim actual expenses if they are more than standard mileage rate? Do actual expenses need to be multiplied by the percentage used for business to determine the deduction?

[MinhT1]

Yes, you can claim actual expenses, 

To use the actual expenses method, add up all the money you actually spent operating your vehicle and multiply that figure by the percentage of the vehicle’s business use (e.g. if 35% of your mileage is for business, multiply by 35%).

Please read this TurboTax article for more information,

[hntrust]

TurboTax calculated that straight line depreciation gave a bigger deduction than actual expenses or standard car deduction. If I use straight line depreciation, do I have to recapture depreciation if I sold the car after 1 years use?

[KrisD15]

Yes, if you sell the car for more than the "Adjusted Basis".

The "adjusted basis" is the original cost less depreciation. 

So if you purchase for 50,000, depreciate 10,000, you will have depreciation recapture if you sell for more than 40,000. 

(original basis 50,000 .... Adjusted Basis 50,000 - 10,000 = 40,000)