[[ I am trying to determine my tax basis in a car I put into service in my Schedule C business shortly after it was purchased. According to my reading of the IRS publications and the TurboTax help, it seems like I should use the FMV of the car at the time it was placed into service as my tax basis.]]That's true. You can't use your original purchase price of the vehicle, but the FMV instead (assuming that the FMV is less than the original purchase price).[[ Unfortunately, I have no idea what the FMV was or is, since the blue book doesn't list it because it's too new. I purchased the car for ~15k on 6/24/98 and used it for exclusively personal purposes until 10/19/98 when it was converted to combined business/personal use. If I cannot find a blue book value, is there a depreciation schedule I could use to compute its FMV? ]]Simply speak with the dealer. They should be able to help you. Since the time period between your purchase and the inclusion in your business is so short, I'd guess that the FMV of the vehicle is close to your purchase price. But we both know that new cars take a depreciation "hit" when you dive them off the lot. So your dealer should be able to help you. And if you can't get any help from the dealer, just be reasonable with your basis computations and you'll likely not have any problems. Or you could take the easy way out and use the "cents per mile" method rather than the "actual" method. TMF TaxesRoy
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