I drive a personal vehicle (owned not leased) for work and have been depreciating it for a couple years on my taxes. In December, I purchased another vehicle and put the original vehicle for sale. It did not sell until february 2015. If it sold in 2014, I would have put it on as a proceed of disposition and paid recaptured depreciation on the 2014 tax return. But because it went into 2015, I wont realize that hit til 2015 I believe. My question is, Can I depreciate the vehicle I purchased to replace the first at the same time I depreciate the first vehicle? Or should I put the selling price of the first vehicle in the proceeds of disposition for the year, even though it did not sell till a month into the next tax year?
Vehicle #1 2014 opening CCA balance $8500
Vehicle #2 added in December 2014 $20,000
Vehicle #1 put for sale Dec 2014, but sold Feb 2015 for $10,000 ($1500 recaptured depreciation if put in 2014)
Can I add vehicle 2 and depreciate it for the year, while depreciating vehicle 1, then show vehicle 1 disposed of in 2015?
Thanks
