Vehicle was personally owned, went into business mid 2017 and started using for business. I only claimed mileage deduction for the portion of the year last year after became self employed. Am I able to claim the special depreciation allowance (recently changed to 100%) after I used the standard mileage deduction for the portion of the year last year after I started my business. The vehicle is used approx. 75% for business.
You need to enter the total miles driven and the business miles driven. Your depreciation will be based on the ratio of the business mileage to the total mileage. If it is over 50%, then you may be allowed to expense a portion of the purchase price. Otherwise, you will just be allowed depreciation over a period of years.
If you choose the expense option of section 179, you will not get a depreciation deduction in the current year if your net income from the business is -0- or negative. In that case, the depreciation will be carried over to the next year.
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