In most situations, the basis of an asset is its cost to you (the amount (in cash, debt, services and/or property) you paid including taxes and fees). Are these business vehicles you are adding to your Schedule C?
Before figuring gain or loss on a sale, exchange, or other disposition of property, or before figuring allowable depreciation, you must determine your adjusted basis in that property. Certain events that occur during the period of your ownership may increase or decrease your basis, resulting in an "adjusted basis."
Increase your basis by items such as the cost of improvements that add to the value of the property, and decrease it by items such as allowable depreciation (you have to include any depreciation that could have been taken even if you did not take it) and insurance reimbursements for casualty and theft losses.
Business Use of Vehicles
Depreciation of Business Assets
Depreciation Recapture: Definition, Calculation, and Examples
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
