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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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How do I calculate prior depreciation?

Customer Question

How do I calculate prior depreciation?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.

LEV :

Hi and welcome to Just Answer!

LEV :

I will help you with depreciation. What is your property? and what is your cost?

JACUSTOMER-7xgfst63- :

The property is my car...originally bought in 2003 for a cost of 23515

LEV :

The car is depreciated over five years. So if it was in business from 2003 - it is fully depreciated.

LEV :

Why do you need prior depreciation? Are you selling your car?

JACUSTOMER-7xgfst63- :

so in the blank that asks for a figure, what should I enter?

JACUSTOMER-7xgfst63- :

I'm not selling it, but TT keeps asking for a figure.

LEV :

Did you depreciated your care in previous years?

JACUSTOMER-7xgfst63- :

yes

JACUSTOMER-7xgfst63- :

at least I believe the account did

LEV :

So - you need to take your tax returns for previous years and add depreciation deduction for all these years.
When did you started to use your car for business? In which year?

JACUSTOMER-7xgfst63- :

2003

LEV :

What is your percentage of business use?

JACUSTOMER-7xgfst63- :

it varies from year to year...this year it's about 56%

LEV :

So far - because your car is fully depreciated - it is $23515*56% - but to precise - we need to get amount for each year.
Because your car was used in business more than 5 years - you may not claim depreciation anymore - it is fully depreciated.

JACUSTOMER-7xgfst63- :

TT entered a current depreciation amount of $1,027...I'm not sure how that was determined

JACUSTOMER-7xgfst63- :

Would it be appropriate to just zero out the amount of depreciation?

LEV :

That is not correct. Your depreciation - should be zero.

LEV :

As I mentioned above - the car is a five years property - and are fully depreciated over five years period.

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