Auto/truck Depreciation

[GTS1101]

I have a client who started using her Yukon in 9/2005 for her Schedule C business as a loan officer. She has been an independent contractor for many years. In August of 2008 in order to do goverment loans she had to get another license and with that license she is required to be employed instead of self-employed. She began using the same Yukon 08/2008 under the W-2 income. The job is still the same. She still works from her home office and travels to meet with clients. The only difference is she is employed by a bank now and not self-employed. Business Percentage use has always been about 80%. Do I stop depreciation on the Yukon. against the Sch C income on 7/31/08 and then began writing off the Yukon on Form 2106/4562 8/1/08 with the current basis for another 5 years because she is now using it under W-2 income instead of Sch C? I would appreciate any input on this issue.

Thanks!
GTS1101

[Burke]

I think not. Just switch the deduction from C to 2106 and continue using the remaining depr method and actual expense.

[ChEAr$]

The secret to success in accounting

I have a client who started using her Yukon in 9/2005 for her Schedule C business as a loan officer. She has been an independent contractor for many years. In August of 2008 in order to do goverment loans she had to get another license and with that license she is required to be employed instead of self-employed. She began using the same Yukon 08/2008 under the W-2 income. The job is still the same. She still works from her home office and travels to meet with clients. The only difference is she is employed by a bank now and not self-employed. Business Percentage use has always been about 80%. Do I stop depreciation on the Yukon. against the Sch C income on 7/31/08 and then began writing off the Yukon on Form 2106/4562 8/1/08 with the current basis for another 5 years because she is now using it under W-2 income instead of Sch C? I would appreciate any input on this issue.

Thanks!
GTS1101

and taxation, is "pro rate, pro rate, pro rate".

Calculate 80% of current year's depreciation and pro rate; 7/12 on schedule c, balance
on schedule a, i.e. form 2106.

[GTS1101]

Thank You!

Thank you both for your input and knowledge. After computing the 80% of depreciation I didn't know I could prorate 7/12 on the Sch C and 5/12 on the 2106. You have been a great help.

Thanks!

GTS1101