Hi,
Currently we own a 2001 Honda and 2017 Kia made car. The latter (2017 Kia) has been used 50+% for our business A for the last 5+ years and I assume will not be deductible anymore for the business starting the next year (2024).
We started a business B in the year 2022 for which we use the 2001 Honda for ~10%.
In the year 2024, we intend to start a new business C which will require the larger (Kia) to be used for 70+% while the smaller (2001 Honda) will likely be used for business A primarily and very little (same as the last year) for business B.
Questions:
1. Is 2001 Honda expenses deductible for the year 2022 though the use is ~10% for business B?
2. Is 2001 Honda depreciable for the year 2022 through the use is ~10% for business B?
3. Once we start the business C with the car arrangements as listed above: Can we depreciate 2017 Kia against business C (though it has been depreciated for 5 years on business A, also fully owned by us)?
4. Once we start the business C with the car arrangements as listed above: Can we depreciate 2001 Honda against business A (we can ignore business B contributions if it is complicated as the monetarily it won't be much).
Is there any guideline I should follow so I can plan better and ensure that everything is clean?
Please note that all taxes are filed as married filing jointly, businesses A and C will have Schedule C while Business B is a rental with schedule E.
Thanks,
