Section 179 example
Need an example to clarify section 179 rules. Used car is purchased in Feb 2017 for $36,000 and placed in service for biz use from Feb through end of year. Car is used almost 100% of time for business. What is the amount that can be deducted using 179? Is it total cost of vehicle, or is the maximum amount of $11,xxx? After the initial 179 claim, does the use of the vehicle also qualify for the bonus depreciation?
Great question. We have a car depreciation guide that includes examples of how to calculate the depreciation for a vehicle that you use for business. While there is a limit on how much you can depreciate for vehicles, you could qualify for the bonus depreciation. However, you must go through the calculations to see if your vehicle qualifies. Here is the link to that article:
Thanks for reading!