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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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I bought a car in 2011 and I wrote it off as a business expense,

Resolved Question:

I bought a car in 2011 and I wrote it off as a business expense, it should've been 100% written off but for some reason he did a 3 yr depreciation on it. Could I buy a new vehicle that is over 6,000 lbs this year and get a full write off on it? Would buying a car this year effect my write off status?
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Lane :

Hi, botXXXXX XXXXXne is that you can depreciate all equipment used in your business .. each under the rules for THAT vehicle/equipment piece

Lane :

You're probably talking about section 179, that says you can depreciate certain thins all in the year placed in service

Lane :

but as long as you use them both for business, one doesnt affect the othert

Lane :

For 2013?

Lane :

Vehicles used in your businesses qualify - but certain passenger vehicles have a total depreciation deduction limitation of $11,060, while other vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes qualify for full Section 179 deduction.

Lane :

Limits for SUVs or Crossover Vehicles with GVWR above 6,000lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs but no more than 14,000 lbs) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.

Lane :

There's one last category ... the ones with NO limits

Lane :

Many vehicles that by their nature are not likely to be used for personal purposes qualify for full Section 179 deduction including the following vehicles:



  1. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify (although some "extended cab" pickups may have beds that are too small to qualify).

  2. Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).

  3. Vehicles with: (1) a fully-enclosed driver's compartment / cargo area, (2) no seating at all behind the driver's seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.

Lane :

Still with me?

Lane :

Looks like you're typing, from my end. I'll wait

Customer:

yes i am, ok so I wrote off a vehicle for 2011 (3 yr depreciation) can I write off another vehicle for 2013? What are better examples of vehicles that qualify for the whole deduction?

Lane :

Yes, again, how you depreciate one vehicle doesn't affect how you depreciate another vehicle ... they'll each qualify or not, based their use and vehicle type ... as far as the vehicle type they are in three categories (1) regular passenger vehicles (2) SUVs & Crossovers and (3) the very specific criteria I listed above (basically the ones that couldn't realistically be used for anything BUT business

Lane :

(1) $11,060 limit

Lane :

(2) SUVs or Crossover Vehicles with GVWR above 6,000lbs, $25,000

Lane :

(3) the following three IRS descriptions:

Lane :

  1. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify (although some "extended cab" pickups may have beds that are too small to qualify).

  2. Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).

  3. Vehicles with: (1) a fully-enclosed driver's compartment / cargo area, (2) no seating at all behind the driver's seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.

Lane :

And that last set of three basically ALL business use vehicles have no limit

Customer:

so you can only write off up to $11,060?

Lane :

If it's greater than 6000 lbs the limit is $25000

Lane :

11060 is for regular (LESS than 6000 lbs) passenger vehicles

Lane :

IF it cna be fit into one of those last three ALL business use vehicles there's NO limit

Customer:

ok sounds good thank you

Lane :

You're welcome ... glad I could help

Lane :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4003
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 5 other Tax Specialists are ready to help you
Expert:  Lane replied 11 months ago.


Thanks for the rating.

By the way, here's an excellent site on Section 179 depreciation.

Just click "Vehicles" on the left side, then be sure to scroll down.

http://www.section179.org/section_179_vehicle_deductions.html


Thanks again,
Lane

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