Minister buys auto and has significant use for his occupational purposes - visitations, seminars, funerals, revivals, etc. Personal use is very little because 4 other vehicles are available. So he takes actual method and depreciates the auto.
The expense is taken against his pastoral income. However, the church has indicated 40% of his pay is a housing allowance. So although the depreciation is available, only 60% of it is actually deductible from his taxable income. The required proration has rendered 40% of the depreciation of no benefit.
Minister sells the auto in year 4, after 3 years of overwhelming business use. He reports the sale on a 4797. Does ALL of the depreciation get recaptured or only that portion which has benefitted the minister?
The expense is taken against his pastoral income. However, the church has indicated 40% of his pay is a housing allowance. So although the depreciation is available, only 60% of it is actually deductible from his taxable income. The required proration has rendered 40% of the depreciation of no benefit.
Minister sells the auto in year 4, after 3 years of overwhelming business use. He reports the sale on a 4797. Does ALL of the depreciation get recaptured or only that portion which has benefitted the minister?