In 2021 I bought a new truck that cost $70,000, listed it as an asset, and I used 100% Special Depreciation Allowance. My business income that year was $20,000 and after taking the Special Depreciation Allowance, it made my business income a -$50,000 which in return resulted in a tax return.
My question is this, does the truck still depreciate every year thereafter even though I took 100% depreciation allowance in 2021? I’ve started my 2022 taxes, and if I use total expenses for the truck, it deducts $14,000 for depreciation on top of my gas and maintenance. Is this right? Or am I supposed to use mileage from now on since I used the 100% Special Depreciation Allowance last year?
