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I am a small business owner, and haul computer equipment around a lot and have recently purchased a larger truck with a gross weight of more than 6000lbs which the section 179 requires for a full deduction. I plan on getting a full deduction on the cost of the truck for my 2004 taxes, but wanted to know if I sell the truck next year and buy a newer one in 2005, will I be able to right off the new truck for my 2005 taxes and will I get hit with the recapture rule for the 2004 truck I just sold?

thanks,

Submitted: 1956 days and 5 hours ago.
Category: Tax
Value: $1
Status: AWAITING EXPERT REPLY
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Posted by T. R. Miller, The SunTaxMan 1956 days and 5 hours ago.

Answer

You have the correct idea!

If you take the deduction and then sell the asset within the depreciable life of that asset, recapture is your "lot in life."

Accepted Answer

You might be able to avoid that result by trading for a new truck rather than selling the old and then buying a new one.

XXX@XXXXXXX.XXX

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Expert: Jon Andrews
Pos. Feedback: 99.7 %
Accepts: 
Answered: 7/15/2004

Certified Public Accountant (CPA)

I deal with all levels of tax planning and controversy - from the ordinary to the complex.

1956 days and 3 hours ago.

Reply

Jon, can you elaborate on how I can avoid recapture by doing a trade in for a new truck every year or so?

thanks,

Chad - XXXXXXXXXXX@XXXXXXX.XXX

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