The bed on the back of my work pickup truck, >6000 gvwr, consistently >85% business use, is rusted out and needs to be replaced. Standard mileage deduction was used the first year the truck was used in business, then alternated between actual expenses with SL/HY depreciation, and standard mileage deduction whichever was greater. Truck is fully depreciated now so there is no depreciation contribution when actual expenses is used.
A new aluminum flatbed body bed will be installed to replace the rusted out bed. Cost is $5300 for the bed, $1100 for installation labor, and $1100 additional cost to sandblast and repaint rusted frame members. Overall cost $7500.
There is some repair/maintenance aspect to the $7500 cost but it seems to dictate capitalizing the $7500 as a new asset with a 5 yr depreciation schedule (200 DB half year convention). Is this the correct way to handle it? Is depreciation of this new $7500 asset independent of whether standard mileage or actual expenses is used going forward for the truck itself? And can Sec179 be used for the $7500 new asset cost if desired? thanks.
