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Question
If you buy a new car, you can write off part of the cost every year for five years. How to do if I bought a car in 2022? How much can I write off in 1 year?
AI accountant’s answer:
If you bought a car in 2022, the amount you can write off depends on whether you're using the car for business or personal use. If you're using the car for business purposes, you may be able to take a depreciation deduction on the car under the Modified Accelerated Cost Recovery System (MACRS). The IRS provides specific depreciation periods and rates for different types of property, including vehicles. For passenger vehicles, trucks, and vans, the depreciation period is typically 5 years. The MACRS depreciation method follows a certain depreciation schedule: 1st year: 20% 2nd year: 32% 3rd year: 19.2% 4th year: 11.52% 5th year: 11.52% 6th year: 5.76% These percentages are applied to the car's depreciable basis, which is the cost of the car minus the salvage value, if applicable. Keep in mind that there are annual dollar limits for depreciation deductions on passenger vehicles. For 2022, the limits are: 1st year: $10,200, or $18,200 if you qualify and claim the special depreciation allowance (also known as bonus depreciation) 2nd year: $16,400 3rd year: $9,800 Each succeeding year: $5,860 until fully depreciated If you use the car for both personal and business purposes, you will need to allocate the amount of use between these two categories, and you can only take the depreciation deduction on the business-related portion. Make sure to track your business and personal use of the vehicle, as well as keep records of your expenses. Lastly, if you use the car purely for personal purposes, you cannot write off the cost or depreciate the vehicle, as it's not considered a deductible expense. Please note that individual circumstances may vary, and it is advisable to consult a tax professional to determine the best approach for your specific situation.
Comment from reviewer
Jacques Seys, CPA
Not Correct.
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Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

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Ask an AI Accountant

A free tool by

Question
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AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started