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Level 1
posted Feb 17, 2023 6:45:31 PM

is a replaced transmission an asset that depreciates?

We had to replace the transmission in our work truck. It was $4450.00, more than the truck cost. Should the new transmission be considered an asset? If so, what category of asset would it fit under?

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1 Replies
Expert Alumni
Feb 17, 2023 7:12:11 PM

Are you claiming Vehicle Expenses for a Business?  If so, you can claim Actual Expenses this year and claim the new transmission as a Vehicle Expense.

 

If you use the vehicle 100% for Business for instance, you can claim 100% of the expense; or allocate according to your Business Use %.

 

However, you could also set up a separate asset for the transmission.  Either way is acceptable, depending on what works best for you.  You can select five-year property, same as a Vehicle. 

 

Here's more info on Business Assets. 

 

Here's more info on Business Vehicle Expenses.