Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
Kris3
New Member

Is it possible to depreciate an old car?

If an older car, a 2008 Camry is now being used for business starting July 2017, can depreciation be applied or is the car too old? Based on the miles, it is being used for business 80% and 20% personal. Can I still take depreciation or is it too old? If depreciation is possible, what is the cost basis? Is it the amount we paid when it was bought brand new in 2008, or the fair market value when it was placed in service July 2017?

1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

Is it possible to depreciate an old car?

Yes, you can depreciate it but you can't a section 179. You must also use as your depreciable amount the lower of Fair Market Value of Adjusted Basis on the conversion date.

What Property Qualifies?

To qualify for the section 179 deduction, your property must meet all the following requirements.

  • It must be eligible property.
  • It must be acquired for business use
  • It must have been acquired by purchase.
  • It must not be property described later under What Property Does Not Qualify .

Property Acquired for Business Use

To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify


View solution in original post

2 Replies
Coleen3
Intuit Alumni

Is it possible to depreciate an old car?

Yes, you can depreciate it but you can't a section 179. You must also use as your depreciable amount the lower of Fair Market Value of Adjusted Basis on the conversion date.

What Property Qualifies?

To qualify for the section 179 deduction, your property must meet all the following requirements.

  • It must be eligible property.
  • It must be acquired for business use
  • It must have been acquired by purchase.
  • It must not be property described later under What Property Does Not Qualify .

Property Acquired for Business Use

To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business. Property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties, does not qualify


Kris3
New Member

Is it possible to depreciate an old car?

Thanks a lot TurboTaxColeen, you explained it well.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v