Question

Holly is a small business owner whose income is reported on Schedule C. She placed her 2016 Honda Accord into service when she purchased it on January 1, 2018 for $24,000. She did not claim any §179 expense, but she did claim bonus depreciation. In 2018, she drove her vehicle 9,600 miles for business, 5,200 commuting miles, and a total of 18,000. What is Holly's depreciation for the car in 2018?

Answer 1

the depreciation for the car is $9,600

Step-by-step explanation:

The computation of the holly depreciation for the year 2018 is as follows:

In the case when the automobiled is used for business i.e. lower than 100% so it would be determined proportionally

i.e.

= $18,000 × 9600 Miles ÷ 18000 Miles

= $9600

Also the communting expense would be considered as a personal expense

So, the depreciation for the car is $9,600