Bonus Depreciation Deduction for automobiles

[John Smith]

Question about the 50% bonus depreciation deduction as it
would apply to a car.

Let's say you purchase a $18000 car on December 31st. Then
you drive it for 5 miles to the office (commuting) and then
6 miles for business. Thus, only 10 miles for the whole
year -- but still 60% were business miles.

First, can you still take the $9000 bonus depreciation
deduction for the car?

Second, is the $9000 bonus depreciation further reduced by
60% (i.e. only $5400) the amount of business miles -- or do
you get to take the whole thing regardless of the percentage
of business miles on the car?

Thanks

 

[Wayne Brasch]

Question about the 50% bonus depreciation deduction as it
would apply to a car.

Let's say you purchase a $18000 car on December 31st. Then
you drive it for 5 miles to the office (commuting) and then
6 miles for business. Thus, only 10 miles for the whole
year -- but still 60% were business miles.

First, can you still take the $9000 bonus depreciation
deduction for the car?

Second, is the $9000 bonus depreciation further reduced by
60% (i.e. only $5400) the amount of business miles -- or do
you get to take the whole thing regardless of the percentage
of business miles on the car?

Business percentage must be used.

Wayne Brasch, CPA, M. S. Taxation