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kramergeorge
Level 2

If I purchase a new vehicle (under 6000 pounds) and its business use is less than 50 percent, can I still claim the depreciation?

 
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RobertG
Expert Alumni

If I purchase a new vehicle (under 6000 pounds) and its business use is less than 50 percent, can I still claim the depreciation?

If you use the property less than 50 percent for business, you can still claim depreciation based on your business use percentage, but you must use straight-line depreciation under the Alternative Depreciation System (ADS) method, using the appropriate ADS class lives for the items.

 

TurboTax will prompt you to answer "Yes" Or "No" with respect to whether or not your business use fell to 50% or below in the Business Vehicle Expense interview (in the Business Expenses section).

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2 Replies
RobertG
Expert Alumni

If I purchase a new vehicle (under 6000 pounds) and its business use is less than 50 percent, can I still claim the depreciation?

If you use the property less than 50 percent for business, you can still claim depreciation based on your business use percentage, but you must use straight-line depreciation under the Alternative Depreciation System (ADS) method, using the appropriate ADS class lives for the items.

 

TurboTax will prompt you to answer "Yes" Or "No" with respect to whether or not your business use fell to 50% or below in the Business Vehicle Expense interview (in the Business Expenses section).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
kramergeorge
Level 2

If I purchase a new vehicle (under 6000 pounds) and its business use is less than 50 percent, can I still claim the depreciation?

Thanks so much! It seems like everything I tried to find on the matter only discussed over 50 percent and the 179 depreciation. Thanks again!

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