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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4676
Experience:  Tax professional and business consultant for 35 years.
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I have a S Corp in New York. I'm going to buy a new auto

Customer Question

I have a S Corp in New York. I'm going to buy a new auto this year 2015. I plan to pay cash ($30k). If so, can I take the full amount as a tax deduction? If not, is there a "best" to buy the car to get the greatest tax deduction?
Thanks
Bruce
Submitted: 2 years ago.
Category: Finance
Expert:  PDtax replied 2 years ago.

Hi from just answer. I'm PDtax, and can assist.

Expert:  PDtax replied 2 years ago.

Expensing a vehicle requires that it meet certain requirements, most notably that it have a gross vehicle weight rating (gvwr) of 6,000 pounds or more. Most cars fail. Many pickup trucks do too.

That assumes that you meet the other requirements, such as greater than 50% business use, and some other requirements.

Customer: replied 2 years ago.

What settings!

Just answer my question, please!!

Expert:  PDtax replied 2 years ago.

OK. Your car likely dues not qualify for expensing.

Expert:  PDtax replied 2 years ago.

Larger vehicles, like a Chevy traverse, tahoe, or similar size vehicles qualify. Bonus depreciation would be an alternative fit a car, allowing 50% expensing in the first year. Depreciation would add to that, but it would not be 100% deductible in the first year.

Expert:  PDtax replied 2 years ago.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.