Market value on a personal truck for business use

[majorv88]

We have a 2017 Ford F-250 with an 8" lift. It was placed into service for business use in August of 2021. Last year we used mileage for the business deduction, but this year with repair expenses I want to try using actual expenses.  Turbotax wants to know the FMV of the truck as of August 2021, and with the lift I know that adds more value, but at this point I don't know what FMV was last year.  Short of guessing, is there an alternative way to value the truck? I know last year used cars were selling at premium prices (and still are) so I would think FMV on the truck is higher that it's depreciated value.

[Anonymous_]

@Mike9241 

[Mike9241]

when did you purchase the vehicle? was the lift already attached?  was it used for personal purposes before being used in business? 

if was purchased and placed into service in 2021 use the cost as FMV. 

[majorv88]

We bought the truck in March 2019 (the dealer put the lift on it when they bought it back from the original owner). It was used for personal use until Aug 2021. 

[Mike9241]

you're limited to the lower of cost or Fair market value on the date converted to business use. 

you could ask the dealer for a valuation. another source might be your insurance carrier

most likely you'll have to guess because there are many factors that go into determining FMV like its condition and mileage. the fact that you mention it needing repairs unless due to events like accidents occurring in 2022, it would seem to infer FMV was much less than cost. 

[majorv88]

No accidents, just maintenance items, plus some issues with how the lift was done…something we didn’t discover until early this year.  Thanks for the help..