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Hi, I'm happy to help. Are you referring to the tax accounting rules or the book accounting rules?
Tax. I'm doing a financial model for a vehicle rental business. I imagine the purchase price is 5 years and the cost of repairs is in the year those are realized?
What type of vehicle, electric, passenger, van, truck? So you're buying the vehicles and renting them out and need to know what you as a business can write off, correct?
It is correct that cars represent 5 year property, but the amount that can be deducted each year is different. Publication 946 is the relevant guide for your question, but the answer depends on a lot of things, and there are exceptions for leased property. Here is a link to the publication.
They are camper vans, but not RVs. VW Camper vans to be exact. Used vehicles. I understand what I Can write off, just curious about the actual depreciation for the vehicles themselves.
I see, so you understand the tax write off. You need to know when, from a business standpoint, for modeling purposes, when should the camper vans be considered used up. Is that right?
Hi, my name is Mark. I will be happy to help you with your questions. The $12,000 that you spend to upgrade the vehicle would be added to the basis of the vehicle. This would be depreciated over 5 years.