# Can I depreciate vehicle upgrades like navigation?



## thefatgoose (Jun 8, 2021)

Let's say I brought a car for $20K, and later on paid for $3K upgrades like navigation, remote control, etc.
Can I use 23K as cost basis to compute the depreciation?


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## BestInDaWest (Apr 8, 2021)

since you are a rideshare driver and use your car for probably 90%+ for that reason any cost associated with that vehicle is deductable


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## Frontier Guy (Dec 27, 2015)

Simple answer is no, long answer is it depends. If the item is permanently installed in the vehicle you can depreciate over time, if it's not a permanent mount item, you could take a one time depreciation/deduction for it. BUT, it also depends on the item.

In 2019, when one of my struts failed and I rebuilt my front suspension, as part of the rebuild I installed a 3" lift kit. The only portion of the lift that was deductible was the base repair, not the cost of the entire lift kit ($600 vs $2,700, even though the entirely new suspension also improved ride quality and made the vehicle somewhat safer). Now, when I bought my truck, I replaced the factory alarm system with an aftermarket system with a remote start, I took it as a 3 yr depreciation, but, from talking to my accountant recently, if I get audited, the IRS may question the entire cost of the alarm/start ($1,100 installed) since the truck came with a factory alarm system, and the two are integrated with one another. 

As for the navigation, they may allow it, but they may also question it, since the Apps have a built in Navigation, the onus will be for you to prove that you never use the navigation built into the apps, and you only use the one installed in the vehicle. That will be almost impossible. However, let's say you upgraded your stereo system, and it includes navigation as part of the head unit. You might be able to deduct a portion of the cost of the system, since it would improve the ride exp. for your passengers.


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