Hi,
Hope everyone is doing well and thanks in advance for any helpful info that can be sent my way.
We have a vehicle that was purchased and used for a business (100%).
The vehicle was purchased and put into service in 2019. The purchase price to put the vehicle in service was $14,200. The prior depreciation for the vehicle (up to 2023) has been $10,413. That's the value that Turbo Tax computes based on the past depreciation of the vehicle.
In calendar year 2023 for which I am now using TT to do our yearly taxes, the vehicle was in a serious accident and we received an amount of $9,990 to salvage the vehicle. As of the end of 2023, the vehicle was no longer used for the business.
As I am using TT to compute our 2023 taxes, I used the standard form (and questions) provided with TT for depreciation and the software computes a current year depreciation value of $1,262 for the vehicle (I answered the question that the vehicle is no longer in service and the "end date" is 10/01/2023.
So my question is, the depreciation for the vehicle totals to:
$10,412 (prior years)
$1,262 (calculated for 2023 by TT)
$11,674
The original cost for the vehicle (to put it into service) was $14,200. What happens with the balance, $2,526?
Is the "final year" depreciation being calculated correctly?
Keith
