Question

Schedule C, Line 9, Vehicle Depreciation

Forum|Forum|1 year ago
February 25, 2025
1 reply
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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

Ask the Experts - Lyft - Feb 2025

R

RobertB4444

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.

@DAD02

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D

DAD02Author

Schedule C, Line 9, Vehicle Depreciation

Hello ROBERTB4444,

Obtained From A Goggle Search

Purchase Price x Use of Vehicle for Business of the Time =____ x divide 1 by the number of years left in the recovery period @ the start of the year (4yrs left of 5 years) =____ (amount included with Actual Method whereby 90% of Business use 2024)=____

65Kx30%=$19,500x25% =$4875x90%=4,387.5

M

MAK70

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

@DAD02