Ed G
Level 1

Under the new tax law luxury vehicles >6,000 lbs can be depreciated 100% in the first year. If the vehicle is not used in business in subsequent years but also is not sold is there any recapture of depreciation?

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Ed G
Level 1

Since the vehicle is a business asset the depreciation will be recaptured when it is sold (the difference between its cost, possibly zero, and the selling price). The gain will be taxed at ordinary rates.

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