section 179 car deduction
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?
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!