Thank you very much for your answer. The calculations make a lot of sense, but I should probably have a professional do it for peace of mind.
To be clear the total cost (sticker price + fees + taxes) of the car was $18,819 back in 2018. I had a trade in that was $4,248. So the total cost of the car was $14,571.
So according to your formula of taking a 40% depreciation:
14,571 - 5,828 = 8,743 8,743 x .80 = 6,994
Does that look correct?
I do have all the receipts for my vehicles, so that isn't a problem for me to get the numbers.
In all honesty, I don't know if I deferred the depreciation or not because I had a tax preparer do my taxes for 2019 (I bought the car in June 2018), but I do still have the returns.
Maybe I should use the TurboTax Live service or a tax preparer to look over my taxes? Do you recommend the TurboTax Live service?
