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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 540
Experience:  Tax attorney and accountant
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I need help knowing which trucks qualify

Customer Question

I need help knowing which trucks qualify for deduction
Submitted: 11 months ago.
Category: Tax
Expert:  Mark Anderson replied 11 months ago.
Can you provide more information. If your business buys a truck, then it qualify for a deduction if it is a necessary and ordinary business expense.
Expert:  Mark Anderson replied 11 months ago.
Here is some info:http://www.section179.org/section_179_deduction.html
Customer: replied 11 months ago.
I understand that bonus depreciation would apply as well for vehicles rated at 6000lbs or over. Does this apply to used vehicles of any age? Any Price? Etc?
Customer: replied 11 months ago.
Oh I see.. Bonus is only available for new equipment
Expert:  Mark Anderson replied 11 months ago.
Here is some more information:http://www.thetaxadviser.com/issues/2015/feb/tax-trends-01.htmlDid I answer your question?
Customer: replied 11 months ago.
what does this mean?: 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.
Customer: replied 11 months ago.
what does "expensing" mean?
Customer: replied 11 months ago.
for example.. I want to buy a used land cruiser, it weighs about 6000 lbs, the cost is 30,000, what will my total write off be?
Expert:  Mark Anderson replied 11 months ago.
Expensing means that you can write it off or expense it rather than having to capitalize and amortize or depreciate over time.
Expert:  Mark Anderson replied 11 months ago.
I would interpret that to mean that you could only write off $25,000 when you purchase it. The rest would need to be capitalized and depreciated. You might want to check with your accountant.
Customer: replied 11 months ago.
So you depreciate the balance?
Customer: replied 11 months ago.
I'm checking with you because my accountant does not know
Expert:  Mark Anderson replied 11 months ago.
I would argue that it does:http://www.mcdonaldtrucks.com/tax.html
Expert:  Mark Anderson replied 11 months ago.
Why don't you use bonus depreciation:For example,for SUVs, pickups and vans weighing more than 6,000 pounds, the Sec. 179 deduction is limited to $25,000 or your TI. But bonus depreciation can be used to write off the entire cost of these vehicles in the year they are placed in service (i.e., purchased), assuming that they are used 100% for business.