My purchase price is much lower than market value. This is a cab and chassis truck that was converted to dump truck along with other repairs prior to being put into business use. Example: Purchase price $10K, upgrades $10K, Market value $25K. I worry if depreciation starts from $10K then end up selling for $25K I will have a huge tax burden so I have been avoiding converting it to business use for depreciation. Do I use $10K, $20K for purchase price? And is IRS using market value of $25K or purchase price as starting point for depreciation.
