Hello,
Using The Straight-Line Method for Vehicle Depreciation for a 2023 Toyota Prius Prime, Business Starting 2024 and @ 90% Business use, would my calculation amount be in error under Actual Method below?
65K x30%=19500x25%=$4875x90%=4,387.5
I'm not sure what that calculation is supposed to represent. Is that a 30% accelerated depreciation deduction? What is the 25% for?
A straight line depreciation deduction on a vehicle is a five year deduction. So you get roughly 20% of the value of the car's business use each year for five years.
Yes, you could not use that particular formula:
Your depreciation starts when you place the vehicle in service so if your business started in 2024, you would start the five year depreciation in 2024.
Because a car is listed property, you have to keep track of the business use percentage each year; it would be difficult to just apply a 90% business use percentage.
See Publication 946 (2023), How To Depreciate Property