I purchased a car for 30,000 (15,000) trade in. I used car 100% for business. What is the most I can depreciate? If I depreciate $15,000 this year does that mean I cannot depreciate again while I own this car?
For he 2018 tax year, depreciation is capped at $10,000 for most cars. The exception to this rule are large SUVs and other types of trucks which is capped at $25,000. To determine how much depreciation you can deduct on your tax return, you will need to complete IRS Form 4562. To get an idea of the information that you will need, read our Car Depreciation article if you have not done so already.
Best of luck,
Crystalynn Shelton, CPA
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