diondon

I need this for accounting purposes. Thanks.

zanemoseley

Depends on how you do it. The most common accounting depreciation is straight line but there's also accelerated depreciation, MACRS and others. You'd probably see the best tax deduction NOW by using accelerated but straight line is more easily justified if you get audited.

zanemoseley

Ohh and most of the time you depreciate an expense over its useful lifespan. Take the paid cost and subtract the salvage value after the useful live then you have the amount you can depreciate over its useful life. Like I said though accelerated will give you more of tax cut sooner. I wouldn't go by the book value of the car currently because I dont' think thats how accountants normally do it. A useful life for a car would probably be about 8-9 years but can differ depending on how much you use it. Also remember you can claim deductions for all repair/maintenance expenses also.

LimeStang05

I just traded in an 05 for my new 06! You wont like the results if you are trying to get a large depreciation! I traded it in for $1700 less than I paid for it new....and it had 19,981 miles on it! Then they knocked about $2k off the sticker of my 06! .....Sorry!

Tres Wright

The V6 depreciates more rapidly than the GT. I looked at trading in my sixxer vert and the trade-in value was quoted as 17,500. I paid sticker exactly a year ago (28,350).

KFC

I had a 65 mustang fastback that I drove for about 5 years and then sold it for little bit more than I paid for it. I made very little mods to it. I hope that helps with your accounting.

Wicked Pony

I inquired about an 06 and they would only give me about $17,000 for mine with only 5k miles on it. I think I paid around 23k for it. Not worth it.

zanemoseley

Diondon, if you really want to expense it correctly contact an accountant. You normally don't worry about the current market value of the item when depreciating it for accounting purposes. You take how long it will be useful to the business and subract any scrap/resale value it will have at the end of this useful life and you depreciate that amount one of several previously mentioned ways.

austijc

Since it's just for my personal net worth accounting, I just use the city assessment they mail me each year with the tax bill. Otherwise I'd just check the NADA guide each year. If it's for business tax purposes, you have to follow the deprectiation schedules, and I'd just hire an accountant to do that.

MikeHawke

depreciation for accounting purposes and the actual amount you lose on your car if you try to trade it in are two totally different numbers.

I won't even try to offer you advice regarding your taxes because I pay someone to do mine and I'm in a different country LOL.