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Level 2
posted Apr 6, 2025 3:49:03 PM

Problems figuring out the depreciation of an automobile

I am trying to make sure I have the appropriate info filled out in my forms. On my Form 3885A (Alternative Minimum Tax Depreciation Report) I have my car and it includes the date in service, which was September of 2017, but there is no price mentioned in the "Cost."

Is that a mistake? Should I put the original amount that I paid for the car when buying in 2017? Then figure out the depreciation from there? I think I must have done something wrong last year, but if I can get more deductions from the use of my car I would like to be sure to do this correctly. 

 

Thanks for any help. 

0 2 802
2 Replies
Expert Alumni
Apr 7, 2025 8:44:02 AM

The cost is indeed what you paid for it in 2017 but it would have been depreciated over the 5 years following that until 2022.  So by now it would be fully depreciated and - if it is 100% business use - it would be worth zero dollars.  If it is partial business use then the business use portion would be worth zero dollars.

 

You can still take mileage for a deduction, of course.  But depreciation has run out on that one.

 

@violicious25 

Level 2
Apr 7, 2025 10:40:59 AM

Thanks so much RobertB4444 that answered my question and I feel like I don't have to worry now.