CCA on a vehicle sold the following tax year, but replaced this tax year?

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?


No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community