Do I need to depreciate my used vehicles that I purchased. I buy these vehicles to resell but also lease if requested.


If I do need to depreciate, do I depreciate the useful life from the time I purchased it for the value or the year of the vehicle? Eg. I bought a 2010 Nissan for 10,000 in June 1, 2016. Useful life is 5 years.

If you intend to resell a vehicle then you would not depreciate it, if you lease it out you would depreciate it, unless you sold it within the first financial year. It depends on how your business is set up and whether you want to keep it simple.

Depreciation is calculated on the purchase price from the date of acquisition.

A 2010 Nissan for 10,000 sounds like a lot to me. I hope you know how to negotiate prices before you get too far into this, and are a mechanic.

Depends on where you are and what the Nissan is, $10000 retail would be about right in this market