Discussion:Confused about Sec 179 as it relates to bus vehicle
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Discussion Forum Index --> Tax Questions --> Confused about Sec 179 as it relates to bus vehicle
| 30 March 2006 | |
| Can someone break down the Section 179 vs. normal depreciation rules for me a little bit? I have a client who purchased an SUV that is over 6,000 lb GVW on 9/1/05. How much depreciation deduction can he take on this vehicle if he used it more than 50% in his Sole Prop business? | |
| 31 March 2006 | |
| He can take the 179 for his business percentage of the cost of the vehicle, however... | |
| 31 March 2006 | |
| The maximum for an SUV is $25K, which must be reduced based on the business use percentage. | |
| 31 March 2006 | |
| Remember, an SUV qualifying for the maximum $25k 179 expense can still take first year depreciation on the remaining adjusted basis. So, if 100% business use, a $40,000 SUV could get the $25k 179, leaving $15,000 to take 20% first year MACRS 5 year on.
Also, if you're talking about a large cargo van, the 179 isn't necessarily limited to $25k. | |
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