Tax Guru – Ker$tetter Letter

Q:

Subject: Section 179 vehicle deduction

 

Hi Kerry, Thanks for the great web site!!!! I found it and have learned quite a bit from it.

 

Two questions I have regarding the deduction of vehicles weighing over 6k pounds:

1. Can this deduction be used on the purchase of a “used” vehicle? Or is it only for new ones?
2. If it is the purchase of a pickup with an open cargo area greater than 6 ft, does the $25k limit still apply?

Thanks in advance, I am planning on purchasing a commercial vehicle in 2007 and want to know the rules of Section 179.

A:

You really should be working with your own personal tax professional to see how to best utilize the Section 179 deduction for your particular case.

I have a page on my website devoted to the Section 179 deduction.

It includes answers to your questions:

Qualifying assets need to be new to you; not brand new.

The $25,000 maximum is only for SUVs.  Pickup trucks over 6,000 pounds aren’t subject to that limit.

Kerry Kerstetter

Follow-Up:

Thanks for the info Kerry,

And thanks again for the very informative web site!

Have a happy holidays