I’m planning to start driving for ride-share services in the future and was wondering if I could purchase a used luxury SUV in the future and follow the depreciation tax deduction outlined above. I current have a 10 year old hybrid SUV and would take the standard mileage deduction since I own the car and spent very little for maintenance/repair/fuel/insurance. A newer luxury SUV could allow me to drive for more lucrative services and to write off the depreciation could help a lot and encourage me to seek a bigger revenue to max the deductions.
Hey Kevin, great question! No, depreciation does not just apply to new vehicles. You can purchase a used vehicle and take a tax deduction as well. As far as your points on purchasing a more expensive vehicle, yes you could take a pretty large deduction in the first year of purchase under the Section 179 deduction. Check out our Car Depreciation article to see the qualifications.
Best of luck,
Crystalynn Shelton, CPA
315 Madison Avenue, 24th Floor
New York, NY 10017
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