Converting person truck to business

[Colmatt]

Can someone walk me through converting truck from personal to partial business use?  10,000 truck bought in 2018.  In 2019 started single member LLC for landscaping part time while still working elsewhere.  

Thank you

[IRonMaN]

It gets transferred into the business at the lower of cost or fair market value.

[linette · Accepted solution]

Client needs a mileage log to prove business use.

Start there.

If he is driving at all for business those miles will accumulate and you will probably find mileage is the higher deduction anyway so not tracking actual expenses doesn't really matter.

If taxpayer will do the work you can actually do the calcuation, but taxpayer needs to track all expenses of that vehicle.

Then you enter mileage figures total and business, and all the expenses and let the program calcuate which is higher deduction.

[Terry53029]

are saying the truck weighs 10000 lbs, or cost $10000 ? If 10000 lbs it is treated for tax purposes as transportation equipment. So, they qualify for 100% first-year bonus depreciation and Sec. 179 expensing if used over 50% for business.

[sjrcpa]

Section 179 is not allowed for property that has been converted from personal use.

I'm not sure about bonus depreciation.

[Colmatt]

$10,000 

[linette]

Doesn't it need to be purchased and placed in service in the same year?