Answer

The $25,000 Code Section 179 deduction has been increased to $102,000.

You may deduct the cost of the qualified vehicle. To qualify it has to have at least 6,000 lb. gross vehicle weight.   Generally, these are the full-sized truck and SUVs. Otherwise, the luxury auto rules will apply and your deductions will be limited.

You will only be allowed to deduct your business-useage portion. Therefore, any nonbusiness or personal use will reduce the amount of your Code Section 179 deduction.

You will need to document your business useage through use of travel logs or appointment schedules showing both total miles and business miles traveled. In addition, you will need to keep up with your receipts for gas, repairs, maintenance, insurance, and other upkeep items and expenses.

Documentation is the key to any deduction and auto expenses are more likely to be scrutinized.

JBE, CPA