Discussion:Depreciation - Used Car

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Depreciation - Used Car


Hi-tek (talk|edits) said:

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)

Jtosadori (talk|edits) said:

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.

Lois (talk|edits) said:

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.

Skhyatt (talk|edits) said:

8 January 2006
Jtosadori, what is it about tax software?? I haven't found anything specific to that in the depreciation section.

To join in on this discussion, you must first log in.
Personal tools