Discussion:VEHICLE SECT. 179 DEDUCTION
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Discussion Forum Index --> Basic Tax Questions --> VEHICLE SECT. 179 DEDUCTION
Discussion Forum Index --> Tax Questions --> VEHICLE SECT. 179 DEDUCTION
| 13 March 2008 | |
| I am SOOOO confused! Client wants to expense as much as possible of the purchase price for his Chevrolet Silverado pickup truck $27660. I've read all of the previous discussions on this, as well as different publications. This vehicle weighs over 6000 pounds. The discussions would point to being able to deduct $25,000 (it is 100% business use). But what about the "Limits on total section 179 and depreciation deductions." IRS Pub. 463 says "There are limits on the amount you can deduct for depreciation on your car, truck, or van. The section 179 deduction is treated as depreciation for purposes of these limits." These limits are $3,060 for the first year. WHAT AM I MISSING???? Obviously everyone else was comfortable with $25,000 deduction, but I keep getting hung up on this limit information. I'm obviously too tired and totalling overlooking some detail. Thanks for your help! | |
| 13 March 2008 | |
| http://www.taxalmanac.org/index.php/IRS_Code_280F_GVWR_over_6000_pounds
http://www.alphaleasing.com/businessaspects/over6000gvwr.asp | |
| 13 March 2008 | |
| You need to find out if the Gross Vehicle Weight (not curb weight) is over 6,000 pounds. If it is over $6,000 pounds, the Sec. 179 limit would be $27,660. The $25,000 limit applies to SUV's. The $3,060 limit applies to automobiles. | |
| 13 March 2008 | |
| The 25,000 limit would apply. Silverado's have seating behind the Drivers Seat thus making them an SUV. | |
| 14 March 2008 | |
| To make matters even more confusing, vehicles with a GVWR of less than 6,000 pounds are eligible for $8,000 in bonus depreciation in 2008. | |
| 14 March 2008 | |
| Derek, I have never seen this particular limitation/restriction. Could you please say where you've read this? This could sure impact a lot of situations. Thank you. | |
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