Depreciation on vehicle

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(Newbie)Newbie

3 Nov 2024

Hi professionals.

So I am thinking of driving my old Mazda for food delivery, which I have had for many years, to counter the costs of living. Now if I go online and it says the cost of this used car right now is like $2,500... And I will be using the car 70% for this food delivery purpose. Can I assume that to be the price of the car right now, and claim the depreciation as a deduction?

Another part to this query is is the maximum useful life set to be 5 years, or how do I assume the useful life of the car, and which method should I use for depreciation?

Looking forward to some interesting and helpful answers.

Kind Regards

Zair

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Taxduck

(Taxicorn)Taxicorn

3 Nov 2024

No. Depreciation starts from when you first owned the vehicle. You would need details of the purchase price, date purchased, then depreciate the vehicle from that date. This would then determine the value of the vehicle when you first use it for income producing purposes.