is a replaced transmission an asset that depreciates?

42sparks · ‎February 17, 2023

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?

MarilynG1 · ‎February 17, 2023

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.

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