Saturday, January 29, 2011

Inherent Depreciation

Q.  From previous questions, I understand there is an inherent amount of depreciation within the mileage rate pertaining to business use of a vehicle. In order to keep track of the basis of our rig, I need to adjust our purchase price by these amounts, but where can I find them?  LA, Virginia

A.  The IRS doesn't make this easy to find. I found part of your answer on Notice 2010-88, however they only go back to 2007.  My records indicate that from 1994 - 1999 the amount is 12 cents; in 2000 it's 14 cents; in 2001 - 2002, 15 cents; 2003 - 2004 16 cents; 2005 - 2006 17 cents. Fortunately I have a program that figures all this out. For current mileage rates see IR 2010-119.

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