TTB pg. 10-9, Auto trade-in, Brad

[Gretel]

#8, example 1 states $11,722 as basis for depreciation purpose. I assume this is the basis for 100% bus.use. Am I correct with this conclusion, or is this the basis assuming 75% bus.use? And if yes, why?

As we all know bus. use varies every year (or at least it should with good record keeping), so basis should start at 100% bus. use and then calculate actual basis to be used for depreciation each year.

Brad, I know you use ProSeries, to make my question simple: Is $11,772 the amount, which should go on line 30 on the "Car and truck expense worksheet"?

[Bees Knees]

$11,722 is the basis for depreciation on the new Van. You would enter $11,722 on line 30 of the ProSeries Auto Worksheet for basis of new vehicle. The program will then take that amount and multiply it times the business use percentage of the new vehicle before calculating depreciation allowed on the new vehicle.