Discussion:Depreciation - Used Car
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Discussion Forum Index --> Tax Questions --> Depreciation - Used Car
| 6 January 2006 | |
| Can sec 179 depreciation be taken on a used vehicle (2002 car) purchased by client "J" in 2005 (100% business use) from a used car lot? Isn't the max total depreciation for 2005 only $2960? does it matter on any equipment purchased, whether or not it was purchased new or used?
Side bar: did they really do away with any bonus depreciation (30% and 50%) for assets bought in 2005? (assuming there was no prior contract in place) | |
| 6 January 2006 | |
| The 30%/50% option does not apply to Used vehicles. Your limited to the $2,960 section 179 deduction. I not sure if the bonuses were extended to 2005. IF you buy tax software check the depreciation section. | |
Platinumcpa (talk|edits) said: | 6 January 2006 |
| Yes, Section 179 can be taken for used vehicles, and it is limited to $2,960. I assume this is not an SUV, a work van or a vehicle weighing over 6,000 lbs. Also - the bonuses as I understand it, were not extented to 2005. | |
| 6 January 2006 | |
| Sec 168K bonus depreciation expired 12/31/04 with a few exceptions. In any event the purchase of the vehicle would have had to been prior to 12/31/04. | |
| 8 January 2006 | |
| Jtosadori, what is it about tax software?? I haven't found anything specific to that in the depreciation section. | |
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