Thanks for all the great help so far. I have 2 more questions that I'm hoping you can help me with.
Most of the business assets
(the rental cars) were put into service in Q1 and Q2 so being able to Elect to use the Mid-quarter tables
for the appropriate quater would be much better for my situation than having to use the mid year tables. When choosing which depreciation
method to use for rental cars purchased and put into service in Q1 and Q2 can I elect to use the Q1 and Q2 tables to depreciate these assets, or am I stuck using the Mid-year tables because greater than 40% of my assets were NOT put into service in Q4. Again, I really hope you know of a way in the regulations
where I can use the Quarter tables instead of the mid-year table for this situation.
Second, I'll have several vehicles I've owned forever that I don't have any purchase details for that I'll be transferring to the rental company. They are at or above High retail value condition level per the NADA's classic car value guide's definition, the authority for this industry. My insurance company requires me to maintain the cars at or above the high retail value condition as part of the lower cost policy b/c in their eyes doing so lowers liability
risk exposure. Because the cars were only $800 when "newly purchased" 60 or more years ago by the original owner am I required to only use as the basis of depreciation $800 or can I use the current average retail value when the cars were titled in the rental company's name, which say, is more like $20K? I plan to only use the value of an Average condition car because this is less than the real condition of the cars and less than the true value to replace the cars should I need to, so in my mind its a much more easy Basis to defend than using the High retail value per the NADA guide.
Thanks again for all the great help navigating what likely isn't a situation that comes up very often!