How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

I am a small business owner and I am thinking of purchasing

Customer Question

Hi, I am a small business owner and I am thinking of purchasing a newer vehicle for business use. Just wondering how much I can write off on my taxes for the next 5 years? I am looking at purchasing a vehicle for around $30,000. Thanks
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: I live in North Dakota. Thanks
Submitted: 10 months ago.
Category: Tax
Expert:  Lane replied 10 months ago.

Hi My name's Lane ... I can help you with this.

...

I have a law degree, with electives in Tax Law, Estate law, Corporate law, and business planning … an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Please bear with me for a moment, while I prepare your response.

Expert:  Lane replied 10 months ago.

The IRS lets you depreciate cars over a five-year period. You can opt to use straight-line depreciation, which would write off 20 percent of the car's cost basis each year.

...

However, you're generally limited to writing off no more than the Section 280F limit of $23,760 over six years.

..

There's another however, however;. Depending on the growss vehicle rate (IF you have the business income to use it AGAINST) you may be able to accelerate all of that depreciation in the fie first year you pace the vehicle in service (IRC § 179)

Expert:  Lane replied 10 months ago.

You can read more about the section 179 deduction here:

...

http://www.section179.org/

...