If actual business use of an automobile is less than 100 percent, the annual automobile depreciation limitations must be reduced to reflect the actual business use only.

Question

Quizplus · Accepted Answer

This is correct according to IRS regulations. Automobile depreciation must be based on the percentage of business use, so if the actual business use is less than 100 percent, the depreciation limitations must be reduced accordingly.

If Actual Business Use of an Automobile Is Less Than