If you dispose of your car, truck, or van before the end of the six-year recovery period, you are allowed a partial depreciation deduction for the year of disposition. The deduction depends on the depreciation method and convention being used.
If you were depreciating the vehicle under the half-year convention (43.5), you may claim for the year of disposition 50% of the deduction that would be allowed for the full year under the 200% or 150% declining balance method, or the straight-line method.
If you were depreciating the vehicle under the mid-quarter convention (43.5), your deduction for the year of disposition depends on the month of disposition. You deduct 87.5% of the full-year mid-quarter convention deduction (43.5) if the disposition occurred in October–December. If the disposition is in July–September, 62.5% of the full year’s deduction is allowed. Your deduction is 37.5% of the full-year deduction if the disposition is in April–June, or 12.5% of the full-year deduction if the disposition is in January–March.
3.145.206.244