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I have a question about 2017 section 179 deductions related…

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I have a question about 2017 section 179 deductions related to vehicles. I understand that the limitations are under 6,000 gvw and over 6,000 gvw- about 11,000 and 25,000 respectively. I also read that when the vehicle is painted to advertise your company then those limits no longer apply.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

If I purchase a $50,000 vehicle and use vinyl wrap for advertising- the kind of vinyl that is not removable by individuals but can be removed by the company that installed it will that qualify for using the full $50,000 as a section 179 expense? This is not a vinyl sticker that can go on and off. IT stays on unless someone uses chemicals and heat to remove it

Submitted: 7 months ago.Category: Tax
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11/22/2017
Tax Professional: Barbara, Enrolled Agent replied 7 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,394
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The requirement for the exception is

Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).

Based on the information you provided, your vehicle has been specifically modified for business.

A painted advertisement on the vehicle is just given as an example of a modification.

Please let me know if I can assist you further.

If I have answered your question, please take a moment to rate my answer since that is the only way I receive credit for answering you.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 7 months ago

.

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Customer reply replied 7 months ago
Barb, then is there any requirement that the vehicle weighs more than 6,000 pounds and are there any value limitations other than the total 179 cap?
Tax Professional: Barbara, Enrolled Agent replied 7 months ago

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction for depreciation including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.

Exceptions include the following vehicles:

  • Ambulance or hearse used specifically in your business;
  • Taxis, transport vans, and other vehicles used to specifically transport people or property for hire;
  • Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).

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.

See the following for detailed information: http://www.section179.org/section_179_vehicle_deductions.html

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Tax Professional: Barbara, Enrolled Agent replied 7 months ago

Just following up with you to see if you have any other questions. If so, please let me know so I can continue to assist you.

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