I have 5 cars, 4 are using exclusive for business purposes (peer to peer rent), my 5th car is used 50% for personal activities. Can I use MACRS for my 4 business cars and straight line for my 5th car?
Can I use the Special Depreciation Allowance for just one of my cars?, if just one applies or in order to be allowed to use it, all my cars have to accomplish all the requirements.
I am using Quickbooks to keep my accounting under control and we are planning to get TurboTax to do our taxes, but I don’t know if the software is able to guileless us with this.
Hi Ingrid! You can use any depreciation method that you like for your books. However, for tax purposes, you must follow the guidelines provided by the IRS which generally requires you to use MACRS depreciation. I definitely recommend purchasing TurboTax because it will do all of the depreciation calculations for you. The tax software will determine if you are eligible to use bonus depreciation or not and on which vehicles.
All the Best-
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