I bought a passenger vehicle on Aug 06,2022 for $115,225.
Total Kms run for 2022 (from Aug 06,2022 to Dec 31,2022) was 5,103Kms, out of which 495 Kms were for business use. Software on form 4562 computes business use at 4.04%, whereas my business use is 9.7% (495/5103). What is the reason of this difference. ( By the way on Car and Truck Expenses Worksheet it says line 6 divided by 5c. Line 6 is 495, line 5 is 5103, so percentage should be 9.7% and not 4.04%)
Secondly, based on S/L-HY, with recovery period of 5 years, software computes depreciation of $4,655.There is no bonus depreciation nor 179 section depreciation, as business use is less than 50%. Taking allowed depreciation of $10,000 for first year and vehicle in use for 148 days (from Aug 06,2022 to Dec 31,2022), should depreciation amount not be $4055 (10000/365*148). Pl validate these numbers.
Thirdly, software gives depreciation deduction of $466. This works out to 10% of depreciation (466/ 4655),
whereas per first para business use is 9.7% (495/5103). Assuming that there may be round off effect, why it is not been taken at 4.4% per Part V 27 (c).
Will appreciate to get an insight to these observations. TIA.
