How to determined the First Year of the Car
Hi… How to determined as The First Year of the car if we wanted to use the ” Maximum Depreciation Deduction of Cars ” table chart..? Is it base on the year we purchased the car or is it base on the year we placed the car for business after we qualified ( after we used it more than 50 % for business ) ?
( For example : In my case ;I purchased the car on 2015 and placed in service the same year but still less than 50% use of business. The years after I used it more than 50% for business. How can I claim the deduction using the ” Maximum Depreciation Deduction of Cars ” table chart above…Thank you.
In order to qualify for the maximum depreciation deduction (Section 179), it is based on the very first year the car was placed into service, not when you started using the car more than 50% of the time. If you did not qualify for Section 179 in the first year, it does not apply to future years. However, you should still be able to deduct some depreciation in the years that you did use the car more than 50% of the time for business. I recommend you contact a tax preparer who can look at your situation and give you some guidance on what your options are for depreciation.
Crystalynn Shelton, CPA