Q: I just started a new business where I work from home. For business travel, I'm using a car I bought in 2001 for $32,000. Can I deduct depreciation based on the original cost? D.J., Spring Valley, N.Y.
A: No. If you convert a personal car into a car used for business travel, your basis for depreciation is the lower of these two numbers: your adjusted basis or the fair market value at the time of conversion. Since a car's value usually declines over time, your deduction will be based on its fair market value.
- Small Business Tax Deduction Strategies No matches