# Depreciation?



## rcad1 (Jul 3, 2015)

I had HR Block do my taxes this weekend. I was kind of nervous because my income was going to be higher this year because f extra income from Uber. Anyway, i made about $1900 driving for Uber. Because of depreciation, i ended up losing around $2K. This really helped me out.

My question is: 

1) I drive a 2007 Hyundai and paid approximately $18K when i bought it. (this is a rough estimate and what i told the tax advisor). Is that correct or should it have been todays KBB value?
2) I believe it depreciated around $4K. I'll need to double check my taxes.
3) The advisor told me you can claim the depreciation for about 5 years?

Can anyone explain how depreciation works? 

Thanks


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## 14gIV (Dec 12, 2015)

lol


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## Stygge (Jan 9, 2016)

Most likely you are better off taking the 57c per mile deduction instead of the actual costs. There are several thread about this. UberTaxPro knows all about it. Read his posts.


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## Verge Vergis (Sep 3, 2015)

I have the same exact question as the original poster. My expenses are higher then the mileage refund and I need to know


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## UberTaxPro (Oct 3, 2014)

Verge Vergis said:


> I have the same exact question as the original poster. My expenses are higher then the mileage refund and I need to know


You can use actual expenses instead of the SMD if it works out better for you. Just remember that if you do use the actual expense method you have to continue using that method every year for that vehicle. In other words you can't switch back to the SMD next year unless you get a new vehicle. Also, you can only deduct the business % of the actual expenses.


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## Verge Vergis (Sep 3, 2015)

Thanks, I do realize that unfortunately. The car is 90%+ business. Very rare I use it for anything personal. It seems like I can only deduct 6 months depreciation via the tax software if I'm understanding it correctly, but I'm not sure.


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## UberTaxPro (Oct 3, 2014)

rcad1 said:


> I had HR Block do my taxes this weekend. I was kind of nervous because my income was going to be higher this year because f extra income from Uber. Anyway, i made about $1900 driving for Uber. Because of depreciation, i ended up losing around $2K. This really helped me out.
> 
> My question is:
> 
> ...


The basis for depreciation is usually the purchase price. 
Depreciation as it relates to taxes is simply a deduction that you take over time instead of all at once. 
Here's a link that might help you: http://www.bizfilings.com/toolkit/sbg/tax-info/fed-taxes/depreciation-computation-steps.aspx


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## Verge Vergis (Sep 3, 2015)

Thanks! ☺


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