- September 17, 2017 at 6:34 pm #101338
Re the limit of $11,160. This has to be reduced by the %age you use the car for
business–in your example 56%. Therefore the limit is 6249.50 which is less than
the $6720 179 deduction you arrived at.
Seccondly, the rules also say that if you don’t use the Special 50% depreciation,
your limit is $3,060! How do you even get to the Special depreciation
deduction if your car costs more than 8 or 9,000–which whose doesn’t.
Do I just take a smaller than eligible 179 deduction, and then only part of
my special depreciation in order to be under by adjusted limit?September 19, 2017 at 5:29 pm #102177
You are absolutely correct on the limit. Thank you for pointing that out to me. I believe you have to take the maximum deduction that you can qualify for under section 179 first; then move onto the special deduction if you have not reached the limit allowed. I recommend that you contact a tax professional who can assess your specific situation and make sure that you maximize this deduction.
Thank you for reading!