Vehicle depreciation

Anag2 — Wed, 05 Mar 2025 19:58:07 GMT

Last year when May tax accountants did depreciation for a cargo van that a purchased on 2023, she added the cost amount wrong $45,846, while checking the dealer paperwork I noticed the total cash price was 59950 , depreciation deduction for 2023 was 6,549 with the 7 years depreciation scheduled. It should have been 8,564 with the right price.
I need advice-for this year should I put the correct price amount ? and if there is any way to correct 2023 cost amount.

Re: Vehicle depreciation

Vanessa A — Wed, 05 Mar 2025 20:35:03 GMT

In order to correct the depreciation on your vehicle, you would need to Amend Your Return from 2023. Was there a reason for the $14,000 deduction? I would check with her to be sure that there wasn't prior to making the correction.

Additionally, a van is depreciated over 5 years not 7 years so the deprecation would be higher than the $8,564 if you are using the straight-line method.

5-year property.

Automobiles, taxis, buses, and trucks.
Any qualified technological equipment.
Office machinery (such as typewriters, calculators, and copiers).
Any property used in research and experimentation.
Breeding cattle and dairy cattle.
Appliances, carpets, furniture, etc., used in a residential rental real estate activity.
Certain geothermal, solar, and wind energy property.
Any machinery equipment (other than any grain bin, cotton ginning asset, fence, or other land improvement) used in a farming business and placed in service after 2017, in tax years ending after 2017. The original use of the property must begin with you after 2017.

7-year property.

Office furniture and fixtures (such as desks, files, and safes).
Used agricultural machinery and equipment placed in service after 2017, grain bins, cotton ginning assets, or fences used in a farming business (but no other land improvements).
Railroad track.
Any property that does not have a class life and has not been designated by law as being in any other class.
Certain motorsports entertainment complex property (defined later).
Any natural gas gathering line placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property, later.

Re: Vehicle depreciation

Anag2 — Thu, 06 Mar 2025 00:23:00 GMT

Thanks for the advance, There wasn’t a reason, it was a mistake. Now I know there are 2 errors, I don’t know why she didn’t for 7 years.

topic Vehicle depreciation in Business & farm

Vehicle depreciation

Re: Vehicle depreciation

Re: Vehicle depreciation