Hi, I work primarily as W2 . This year I started taking 1099 side gig as sole proprietorship (NOT LLC). I have two cars under my name: a Toyota and a Volvo. The Volvo xc60 I bought in 2023 and have placed into 100% business use 2025.
My question:
1. For 2025 tax return, can I use bonus depreciation plus straight-line? I'm not sure as the year of purchase and placement in service are different
2. If in 2 years or so, I decide to transfer my Volvo to personal use, i.e., still under my name. I would be subject to recapture. Do I pay recapture when I make the transfer or when I sell the call, say like 10 years later? I'm hoping to limit my recapture amount if IRS allows recapture at sale (lower faire market price after personal use)
Thanks
