ok so the correct way to calculate it is to multiply both the original purchase price AND the sale price by 80%?
When I say bigger tax bite, I mean bigger clawback of depreciation because I am getting more tax deductible depreciation each year than actual depreciation of the selling price. For instance, in 2026 half a year depreciation is $4214 but another half a year waiting to sell the car may only reduce sale price by $2000.Eventually I am at zero basis but the car may still be worth 25K. So the longer I wait to sell, the more I will owe back in the year of the sale. Does that make sense?
Also, if I don't have exactly 80% business usage each year, Do I do a weighted average of all the years?
And if I put a new car in as a replacement in 2026, do I get half a year on the old car at $4214 and first year (20%) for the replacement? Is the half year the same no matter what date I actually replace it in 2026?
Sorry for all the questions, first time with a business vehicle replacement.
