If a used $35,000 automobile used 100% for business in the first year (2013)fails the 50% business usage test in the second year,no cost recovery will be recaptured.

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If a used automobile is used 100% for business in the first year and fails the 50% business usage test in the second year, no cost recovery will be recaptured. This is because the automobile is considered to be fully depreciated after the first year.

If a Used $35,000 Automobile Used 100% for Business in the First