Basis when placed in service 1/1/2002: 37,479
"Cents Per Mile Recapture" 2002 thru 2010
Remaining basis 34,073
USING S/L DEPRECIATION:
a. 2011: Total miles 7364 w/business miles of 1571 = 21.33% business use. Thus 10% x 34073 = 3407 x 21.33% = 727 depreciation for 2011 (Chap 8, Express Answers).
b. 2012 20% SL
c. 2013 20% SL
d. 2014 20% SL
e. 2015 20% SL
f. 2016 20% SL
If 7th year vehicle is not fully depreciated continue with depreciation based on the business use percentage.
This seems relatively simple for such a conversion. BUT the one thing that bothers me is: Am I also required to reduce the basis by the "Business Use Percentage", like in a. above: 21.33% x 34073 = 7268, with basis dropping to 26,805 for the 2012 calculations? Or am I reading this incorrectly and should stay with the presentation in a. thru f. above? Would appreciate comments. Thanks.
"Cents Per Mile Recapture" 2002 thru 2010
Remaining basis 34,073
USING S/L DEPRECIATION:
a. 2011: Total miles 7364 w/business miles of 1571 = 21.33% business use. Thus 10% x 34073 = 3407 x 21.33% = 727 depreciation for 2011 (Chap 8, Express Answers).
b. 2012 20% SL
c. 2013 20% SL
d. 2014 20% SL
e. 2015 20% SL
f. 2016 20% SL
If 7th year vehicle is not fully depreciated continue with depreciation based on the business use percentage.
This seems relatively simple for such a conversion. BUT the one thing that bothers me is: Am I also required to reduce the basis by the "Business Use Percentage", like in a. above: 21.33% x 34073 = 7268, with basis dropping to 26,805 for the 2012 calculations? Or am I reading this incorrectly and should stay with the presentation in a. thru f. above? Would appreciate comments. Thanks.