Dragor accommodationDeductions After Recovery Period You cannot claim a depreciation deduction for listed property(other than passenger automobiles) in years after the recovery period.When determining if there is any depreciable basis (unrecovered basis)at the end of the recovery period, you are considered to have usedthis property 100% for business and investment purposes during all ofthe recovery period. Therefore, there is no depreciable basis at theend of the recovery period. Passenger Automobiles If you have unrecovered basis in your passenger automobile at theend of the recovery period and you continue to use it for business,you can deduct that unrecovered basis after the recovery period ends. Unrecovered basis.Unrecovered basis is the cost or other basis of the passengerautomobile reduced by any clean-fuel vehicle deduction, electricvehicle credit, depreciation, and section 179 deductions that wouldhave been allowable if you had used the car 100% for business andinvestment use. If you continue to use your car for business after the recoveryperiod, you can claim a depreciation deduction for that business usein each succeeding tax year until you recover your full basis in thecar. The maximum amount you can deduct is determined by the date youplaced the car in service and your business-use percentage. Example.In May 1993, you bought and placed in service a car costing$30,000. The car was 5-year property under GDS (MACRS). You did notelect a section 179 deduction for the car. You used the carexclusively for business during the recovery period (1993 through1998). You figured your depreciation as shown below. Year Percentage Amount Limit Allowed 1993 20.0% $6,000 $2,860 $2,860 1994 32.0 9,600 4,600 4,600 1995 19.2 5,760 2,750 2,750 1996 11.52 3,456 1,675 1,675 1997 11.52 3,456 1,675 1,675 1998 5.76 1,728 1,675 1,675  Total $15,235 bed and breakfast inns WroclawAt the end of 1998, you had an unrecovered basis of $14,765($30,000 - $15,235). If in 1999 and later years you continue touse the car 100% for business, you can deduct each year the lesser of$1,675 or your remaining unrecovered basis. If your business use of the car had been less than 100% during anyyear, your depreciation deduction would have been less than themaximum amount allowable for that year. However, in figuring yourunrecovered basis in the car, you would still reduce your basis by themaximum amount allowable as if the business use had been 100%. Forexample, if you had used your car 60% for business instead of 100%,your allowable depreciation deductions would have been $9,141 ($15,235 60%), but you would still have to reduce your basis by$15,235.