Coral purchased a personal auto for $35,000 during 2011.She uses it for 90 percent business use.How much depreciation may she take for 2011? Assume she elects out of the bonus depreciation provisions.

Question

Quizplus · Accepted Answer

Coral can take a depreciation deduction based on the MACRS depreciation system for vehicles. For 2011, the maximum depreciation for a passenger vehicle is $3,060. Since she uses it 90% for business, she can deduct 90% of $3,060, which is $2,754.

Coral Purchased a Personal Auto for $35,000 During 2011