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Depreciation Cost or Basis

Sandra B
Level 1

Hello everyone,

I have a client who happens to be a long haul driver. His truck reached the last year of depreciation over the 5 yrs, 2022 was 5th year meaning is come to an end. My question is when I put the truck year and model  and expenses/ mileage aquire through 2023, what do I need to put on the costor basis for an amount? If I put zero , error on recovery period requires a number too. I appreciate any input 

Thank you,


0 Cheers
1 Comment 1
Level 15

Basis is generally the amount he paid for it.

You will also need to enter the "prior depreciation" that was claimed on all prior tax returns for that asset.

If this is a semi-truck tractor, the depreciation Recovery Period should have been THREE years, not five.  I think you would need to use an Asset Entry Worksheet, not the vehicle worksheet.

If it was a five year Recovery Period, that is actually depreciated for SIX tax returns (the first and last year are partial years), so there would still be depreciation in the sixth year.

Does that answer your questions?