Is your example correct? 9,000 miles of 12,000 is 75%, not 56.25%.
“You drove the car a total of 12,000 miles and 9,000 were for business. Therefore, your business use was 56.25%”
Thank you for your question. Yes, our example in the Car Depreciation article is correct. We probably could have done a better job of breaking down the math so I will do that here: Since the vehicle was purchased on March 1, it was only used for 9 months for business. If you take 9,000 miles and divide it by 12,000 you do get 75%. If the vehicle was purchase back on January 1st then you could use the whole 75%. However, since it was not, you need take that 75% and multiple it by 9 months divided by 12, you will get .5625, which is 56.25%.
(9,000/12,000) times 9/12 = .5625 or 56.25%
Hope this helps.
Crystalynn Shelton, CPA
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