Changing Client from Standard Mileage to Actual

[Edward]

Basis when placed in service 010102 37479

Cents Per Mile recapture 2002 thru 2010 (3406)

34073

USING S/L DEPRECIATION:

a. 2011: Total Miles 7364 w/business miles of 1571 = 21.33% business use, thus 17.50% x 34073 = 5963 x 21.33 = 1272 depreciation for 2011.

b. 2012 - 20% SL

c. 2013 - 20% SL

d. 2014 - 20% SL

e. 2015 - 20% SL

f. 2016 - 10% SL

If 7th year vehicle is not fully depreciated continue with the 10% SL depreciation based on business use percentage.

This seems to be too easy - I did one of these years ago BUT THE one item that bothers me is: Am I also required to reduce the basis by the "Business Use Percentage" like in a. above, 21.33% x 34073 equals 7268.00 which would drop basis to 26805 for the 2012 calculations? OR, shold I stick with the presentation in a. thru f. above? I picked this guy up this year. Would appreciate any comments. Thanks.

[jainen]

>>If 7th year vehicle is not fully depreciated continue with the 10% SL<<

I don't understand this. First of all, 2017 is not the 7th year; it's the 16th year. When you switch to SL, you divide the adjusted basis by the number of years remaining in the useful life. Except as limited by business usage and 280F, that straight line does not change. I don't see why you drop from 20% to 10% at some point. And I don't see where 17.50% fits in either.

[Edward]

Believe me, I admittedly was in a state of confusion when that post was written - but as always (as you've done in the past) came forward and relieved me of the misery -- I had done one of these way back and when I opened the depreciation book I noted the 280F looking me in the face and that certainly "rang the bell". Thanks again for your comments.