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COPYRIGHTED MATERIAL 38 Family Child Care Tax Workbook and Organizer Vehicle Depreciation Fair market value of vehicle when first used for business __________ Business-use percentage of vehicle x __________ (D) = __________ Depreciation percentage (from tables on page 106) x __________ %* Depreciation deduction __________ (G) Actual Business-Use Deduction Business deduction for actual vehicle expenses Extra business endorsement on vehicle insurance (if any) Depreciation deduction Business-use percentage of other vehicle expenses Total business deduction (actual vehicle expenses method) Enter the Total business deduction on Schedule C, line 9 __________ (F) + __________ + __________ (G) + __________ (E) = __________ Compare your total business deduction under the standard mileage rate method and the actual vehicle expenses method. If you began your business last year or used the standard mileage rate method for this vehicle in earlier years, you may choose to use the total from either method. If you used the actual vehicle expenses method for this vehicle in earlier years, you must continue using this method. (For more information, see chapter 5.) If You Use the Redleaf Calendar-Keeper Refer to the year-to-date total mileage at the bottom of the December expense report. If you tracked your actual vehicle expense in one of the monthly expense columns, enter the year total from December on the appropriate lines above. If You Use the Mileage-Keeper Enter the amounts recorded for mileage and actual vehicle expenses from pages 34–35 (if you use the standard mileage rate method) or pages 44–45 (if you use the actual vehicle expenses method) on the appropriate lines above. *See chapter 3 for limitations on the depreciation deduction each year. Also, if you purchased a vehicle last year, see the Section 179 rules in chapter 3. COPYRIGHTED MATERIAL