If a used $15,000 automobile used 100% for business in the first year (2012) fails the 50% business usage test in the second year, no cost recovery will be recaptured.

Question

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If a vehicle fails the 50% business usage test in the second year, cost recovery must be recaptured. This is because the vehicle was not used for business purposes at least 50% of the time during the second year.

If a Used $15,000 Automobile Used 100% for Business in the First