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Shawn B1
Returning Member

Auto Depreciation of one vehicle on two schedule Cs

Can you explain how to handle Auto Depreciation of one vehicle on two separate schedule Cs when one of the businesses has been using the vehicle (and depreciating it) for a number of years, and then I started a second company (running both businesses at the same time). How do I show the vehicle depreciation on the second (new) schedule C while I still have business use with the vehicle in the first (older) business? Thank You

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1 Reply
KristinaK
Employee Tax Expert

Auto Depreciation of one vehicle on two schedule Cs

Here is how I would suggest approaching it. 

Keep the same vehicle information for Business 1. Use total and business miles to determine the current year's depreciation. TurboTax would do it for you once you enter the information. 

 

Enter another vehicle for Business 2, using the remaining cost basis you show for the vehicle on Business 1. Opt out of the bonus depreciation, and do not use Sec. 179 deduction for this asset. Again, use the total and this business's miles driven to determine the depreciation allowed. 

An example may make it clearer. 
 

You bought the vehicle for $50,000. Let's say that 2024 was year 3 of its depreciation, and the accumulated depreciation is $35,000. This gives you the remaining depreciable value of $15,000.  You also drove 26,000 total miles. You drove 14,000 for Business 1. And 8,000 for Business 2. 

Business 1. There will be no changes to the asset information for this vehicle. You will enter total mileage driven at 26,000, and business miles 14,000, giving your business usage of 54%. 

Business 2. You will create a new asset. The cost basis is $15,000. Total miles driven - 26,000, Miles driven for this business - 8,000. Business usage 31% 

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